Genesco is Finished

Finish Line Inc. (Indianapolis) has entered into an agreement to acquire Genesco Inc. (Nashville, Tenn.) for about $1.5 billion. The transaction is expected to be completed in fall 2007.

This spring, Genesco was the target of an aggressive uninvited takeover attempt by Foot Locker Inc. (New York). The company rejected the bid, estimated at about $1.2 billion.

“Following a review of our strategic alternatives, we believe that this combination is in the best interests of our shareholders,” said Genesco ceo Hal Pennington. ” We have long admired The Finish Line's entrepreneurial spirit, and believe that together we will be able to leverage the combined companies' scale and talents. In addition, Genesco and The Finish Line share similar philosophies that promote a strong team culture and the spirit of creativity. These value systems, which have long distinguished our companies, will continue to define the next chapter of our history together.”

Upon the close of the transaction, Genesco will become a subsidiary of Finish Line, maintaining its Nashville operations. The combined company's portfolio of retail concepts will include Finish Line, Man Alive and Paiva plus Genesco’s Journeys, Journeys Kids, Shi by Journeys, Underground Station, Jarman, Johnston & Murphy, Hat World, Lids, Hat Shack, Hat Zone, Head Quarters, Cap Connection and Lids Kids. In addition, the combined company's licensed and wholesale footwear and apparel business will include Johnston & Murphy and licensed brands.

“With Genesco, we will enhance our strength in athletics and gain an immediate presence in new and growing retail categories to further diversify our business and deepen our vendor relationships,” said Finish Line ceo Alan Cohen. “We believe the increased scale achieved through our combination will better enable us to drive strong returns in this competitive retail environment.”

Genesco operates more than 2050 retail stores in the U.S. and Canada. The company also sells footwear at wholesale under its Johnston & Murphy brand and under the licensed Dockers brand. Finish Line, one of the largest mall-based specialty retailers in the U.S., operates 694 Finish Line stores in 47 states, 93 Man Alive stores in 19 states and 15 Paiva stores in 10 states.