Add-on Acquisition • Retail

Hibbett Acquires City Gear

On October 29, 2018, Hibbett acquired retailer City Gear from Banyan Investment Partners and Capitala Group for 88M USD

Acquisition Context
  • This is Hibbett’s 1st transaction in the Retail sector.
  • This is Hibbett’s largest (disclosed) transaction.
  • This is Hibbett’s 1st transaction in the United States.
  • This is Hibbett’s 1st transaction in Tennessee.

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M&A Deal Summary

Date October 29, 2018
Target City Gear
Sector Retail
Buyer(s) Hibbett
Sellers(s) Banyan Investment Partners
Capitala Group
Deal Type Add-on Acquisition
Deal Value 88M USD
Advisor(s) Fifth Third (Financial)

Target Company

City Gear

Memphis, Tennessee, United States
City Gear LLC is an urban fashion retail sector operating in the South East and Midwest. City Gear LLC was founded in 1978 and is based in Memphis, Tennessee.
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Buyer Overview 1

Buyer

Hibbett

Birmingham, Alabama, United States

Category Company
Founded 1945
Sector Retail
Revenue 1.7B USD (2023)
DESCRIPTION

Hibbett is a sporting goods stores in small to mid-sized markets predominately in the South, Southwest, Mid-Atlantic and Midwest regions of the United States. Hibbett was founded in 1945 and is based in Birmingham, Alabama.


Deal Context for Buyer #
Overall 1 of 1
Sector: Retail 1 of 1
Type: Add-on Acquisition 1 of 1
State: Tennessee 1 of 1
Country: United States 1 of 1
Year: 2018 1 of 1
Size (of disclosed) 1 of 1

Seller Profiles 2

SELLER

Banyan Investment Partners

Miami, Florida, United States

Investor


Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 550M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Banyan is a specialty finance firm that provides mezzanine capital to smaller middle-market companies headquartered primarily in the Southeast US. Banyan looks to invest $5 to $25 million of junior capital in profitable companies. The Firm does not have any industry preferences, however, Banyan will not invest in real estate development, oil and gas exploration, direct lenders, start-ups or turn-around situations. Banyan Mezzanine was formed in 2002 and is based in Miami, Florida.


Deal Context for Seller #
Overall 17 of 22
Sector: Retail 3 of 4
Type: Add-on Acquisition 11 of 14
State: Tennessee 1 of 1
Country: United States 17 of 22
Year: 2018 1 of 1
Size (of disclosed) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-06 Compact Power Equipment Centers

Fort Mill, South Carolina, United States

Compact Power Equipment Centers is a manufacturer and wholesale distributor of compact utility equipment used in a broad spectrum of industries including landscape contracting, telecommunications, general construction, irrigation, and utilities. Compact Power Equipment Centers LLC was established in 2008 and is headquartered in Fort Mill, South Carolina.

Sell $265M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-09-18 GWS Tool

Tavares, Florida, United States

GWS Tool is a manufacturer of engineered custom, standard, and modified standard cutting tools, primarily servicing the aerospace and defense, power generation, automotive, and medical sectors. GWS Tool was formed in 2014 and is based in Tavares, Florida.

Buy -
SELLER

Capitala Group

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1998
PE ASSETS 2.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Capitala Group is an asset manager that provides equity and mezzanine capital to mid-sized companies valued up to $250 million. Funds are generally used to support growth needs, add-on acquisitions, management/leveraged buyouts, and recapitalizations. Capitatala will invest across the US, but generally targets opportunities located in the Southeast. Industry preferences include building products, business services, consumer/reteail, general industrial, healthcare, and technology. Prospective companies typically have revenues greater than $10 million and EBITDA of at least $3 million. Capitala was formed in 1998 and is headquartered in Charlotte, North Carolina.


Deal Context for Seller #
Overall 32 of 56
Sector: Retail 2 of 3
Type: Add-on Acquisition 12 of 20
State: Tennessee 2 of 3
Country: United States 31 of 55
Year: 2018 1 of 2
Size (of disclosed) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-07-23 Optio Rx

Palm Beach Gardens, Florida, United States

Optio Rx owns and operates specialty compounding pharmacies and home infusion providers licensed across the United States. The company focuses on providing medications and care in the fertility, veterinary, and hemophilia sectors. Optio Rx was founded in 2018 and is based in Palm Beach Gardens, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-19 Visible Body

Framingham, Massachusetts, United States

Visible Body is a creator of 3D anatomical models and animations of the human body used in the education of both students and healthcare professionals. Visible Body was founded in 2007 and is based in Framingham, Massachusetts.

Buy -