Barring any regulatory snafus, the deal will be completedin Q1 1998 and immediately create the second largest full-lineoperator with 120 units in 13 states and annual sales volume inexcess of $700 million. The emerging entity, Gart Sport Systems,will be based in Denver and traded on NASDAQ. The value of thedeal will be determined after shares of the combined businessstart trading in Jan. Industry analysts expect Sportmart shareholdersto get from $38 million to $51 million, or $3 to $4 a share, valuingthe new entity at about $160 million.

The pro forma operation last year would have hadsales of $669 million. This includes ... Log in to view full article.