Foot Locker to buy Delias brand for $102 mln

NEW YORK, Sept 29 (Reuters) - Athletic shoe and clothing chain Foot Locker Inc (FL.N: Quote, Profile, Research, Stock Buzz) said on Monday it plans to buy Delias Inc's (DLIA.O: Quote, Profile, Research, Stock Buzz) CCS business for $102 million, as it seeks to boost its appeal with teenage skateboarders.

Delias also said its core brands, dELiA*s and Alloy, should generate positive earnings before interest, depreciation and amortization in the fourth quarter of fiscal 2008 and fiscal 2009, helping to send its shares up 25 percent.

The all-cash deal for CCS is expected to close within 60 days.

CCS is a direct-to-consumer business that sells skateboard shoes, clothes and accessories through catalogs and the Internet. It is expected to have revenue of $80 million in 2009 and add to Foot Locker's earnings in the first full year of operation, the company said.

Barclays Capital advised Foot Locker while Financo advised Delias on the deal.

Delias, whose main customers are teenagers, said it will not decide how to use the proceeds from the sale until after the end of its fiscal year, in 2009.

Delias shares were up 63 cents, or 25 percent, at $3.13 on Nasdaq.




Source: Reuters