Authentic Brands Group to Acquire Zumiez Inc. for $143M

TL;DR

Zumiez going private! ABG buying for $1.02/share cash, deal expected Q3.

AI Summary

Zumiez Inc. announced on June 6, 2024, that it has entered into a definitive agreement to be acquired by an affiliate of private equity firm Authentic Brands Group. The transaction is valued at approximately $143 million, with shareholders expected to receive $1.02 per share in cash. The deal is anticipated to close in the third quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition marks a significant shift for Zumiez, moving from a publicly traded company to being privately held under a new ownership structure, potentially impacting its strategic direction and operations.

Risk Assessment

Risk Level: medium — The deal is subject to customary closing conditions, and there's always a risk of regulatory hurdles or financing issues preventing the transaction from closing.

Key Numbers

• $143M — Transaction Value (Total amount Authentic Brands Group is paying for Zumiez.)
• $1.02 — Per Share Price (Cash amount each Zumiez shareholder will receive.)

Key Players & Entities

• Zumiez Inc. (company) — Company being acquired
• Authentic Brands Group (company) — Acquiring entity
• $143 million (dollar_amount) — Total transaction value
• $1.02 (dollar_amount) — Per share acquisition price
• June 6, 2024 (date) — Date of definitive agreement
• Third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $25 million — the repurchase of up to an aggregate of $25 million of its Common Stock (the "Repurchase Pr

Filing Documents

• f8k_060624.htm (8-K) — 15KB
• exh_991.htm (EX-99.1) — 122KB
• 0001171843-24-003331.txt ( ) — 340KB
• gnw-20190101.xsd (EX-101.SCH) — 3KB
• gnw-20190101_def.xml (EX-101.DEF) — 25KB
• gnw-20190101_lab.xml (EX-101.LAB) — 33KB
• gnw-20190101_pre.xml (EX-101.PRE) — 22KB
• f8k_060624_htm.xml (XML) — 3KB

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. On June 6, 2024, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the first quarter ended May 4, 2024, a copy of which is attached hereto as Exhibit 99.1 and the contents of which are incorporated herein by this reference. In accordance with General Instruction B.2. of Form 8-K, the information contained in this report and the Press Release shall not be deemed "Filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

01. Other Events

Item 8.01. Other Events. On June 5, 2024, Zumiez Inc. approved the repurchase of up to an aggregate of $25 million of its Common Stock (the "Repurchase Program"). The repurchases will be made from time to time on the open market at prevailing market prices. The Repurchase Program is expected to continue through June 30, 2025, unless the time period is extended or shortened by the Board of Directors.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. 99.1 Press Release dated June 6, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Zumiez Inc. Date: June 6, 2024 By: /s/ Richard M. Brooks Richard M. Brooks Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR