Finish Line tops Foot Locker in $1.5B deal for Genesco

0 Comments | Deseret News (Salt Lake City), Jun 19, 2007

NASHVILLE, Tenn. (AP) -- Speciality retailer Finish Line Inc. said Monday it agreed to pay about $1.5 billion for footwear and accessories retailer Genesco Inc., which recently rejected a lower offer from Foot Locker Inc.

Genesco shares rose more than 8 percent on news of the deal.

Finish Line, a leading mall-based retailer based in Indianapolis, said combined sales of the companies amount to about $2.8 billion from 2,870 retail stores in the United States, Canada and Puerto Rico.

Finish Line agreed to pay $54.50 per share, or about 6.8 percent higher than the $51 per share price offered two weeks ago by Foot Locker. The Finish Line offer marks a premium of 9.8 percent over Genesco's closing price on Friday.

Genesco previously rejected the Foot Locker bid, saying it was not in the best interest of shareholders. The company had been reviewing alternatives to increase its stock price. It has about 27.5 million fully-diluted shares outstanding.

Genesco shares rose $4.15, or 8.4 percent, to $53.75 Monday.

Finish Line operates 694 Finish Line stores in 47 states, 93 Man Alive stores in 19 states and 15 Paiva stores in 10 states.