The Board of Findel is pleased to announce that it has completed the sale of its subsidiary Kitbag to Fanatics UK Holdings Ltd, a newly formed subsidiary of Fanatics Inc. ("Fanatics"), the US market leader for officially licenced sports merchandise.
The gross consideration payable at completion is £11.55 million in cash subject to an adjustment based upon the working capital position of Kitbag at completion. The cash proceeds will be used to further reduce the Group's bank debt and to help drive further growth within the Group's core businesses, Express Gifts and Findel Education. Kitbag is a specialist sports retailer which operates through its own online platform Kitbag.com, and also manages officially-licensed club or sports organisation retail outlets, including online, physical stores and event-retail on a white-label basis.
Its partners are a wide range of the leading names in sport. The Board believes the sale of Kitbag to Fanatics to be in the best interests of our shareholders, Kitbag's employees and Kitbag's business partners. The excellent strategic fit between Fanatics and Kitbag together with Fanatic's willingness to invest in the business will provide opportunities to Kitbag that were not available under Findel's ownership. The sale is being made at a favourable time in Kitbag's annual working capital cycle. In addition to the £11.55m purchase consideration, the need for Findel to fund both a peak working capital requirement of around £8m and its ongoing losses has been removed.
As a result of the reduced scale of the group following this disposal the board of Findel PLC have decided that appointment of a Chief Executive is no longer appropriate and that the company should continue to be led by an Executive Chairman in the medium term. David Sugden who has filled this role since March 2015 pending the appointment of a Chief Executive has indicated that he does not wish to take on this commitment for an extended period and a search for a replacement will therefore commence immediately. David will continue in his current role to effect a smooth handover.