INDIANAPOLIS — In a move designed to pursue growth in a specialized niche, The Finish Line Inc. said Thursday it has acquired an 18-unit chain of specialty running shops for $8.5 million. The stores, which operate under the names of the Greater Boston Running Company, Texas Running Company, Princeton Running Company, New York Running Company, etc., are located in Connecticut, the District of Columbia, Florida, Maryland, Massachusetts, New Jersey, New York and Texas, and have consolidated annual sales of about $19 million.
The stores, the first of which opened in 1996, are popular with serious runners seeking expert advice and precision running shoes and apparel. Finish Line expects to retain key members of the stores’ management team as well as the names and culture of the stores, the company said.
“This acquisition is an important step in our strategic plan to drive growth outside of our core Finish Line business,” said chairman and chief executive officer Glenn Lyon. “We have a tremendous growth opportunity within the specialty running business with this acquisition as the foundation of that growth. We plan to expand the number of stores and develop this chain’s first e-commerce capability as well as pursue other potential acquisitions in the specialty running business. The dedicated team we have in place to drive growth outside of our core business will focus on maximizing this opportunity, which clearly leverages our company’s strengths and core competencies.”
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Finish Line expects the acquisition will be dilutive to earnings by about 1 cent a share in fiscal year 2012.
Finish Line operates 647 stores in malls across the United States.