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Finish Line Acquires The Running Company
SportsOneSource Media     Posted: 9/1/2011

The Finish Line, Inc. announced that it has invested $8.5 million to acquire the assets of and assume certain liabilities of The Running Company, an 18-store chain of specialty running shops across several states with consolidated annual sales of approximately $19 million. Key members of the chain's management team and store leadership will remain in place following the acquisition.

The stores banners include Greater Boston Running Company, Texas Running Company, Georgetown Running Company, Princeton Running Company and New York Running Company.

The Running Company chain was founded by competitive runner Gene Mitchell in 1996, and the stores are operated by a group of individual owners.

Finish Line said in its statement that the stores have earned a loyal following of serious runners who demand expert advice and precision-fitted running shoes and apparel.  Finish Line also plans to keep the stores operating under their current banners and will retain the culture and outstanding customer service that have made them successful.

"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."

Finish Line management anticipates that due primarily to start-up costs, the acquisition will be dilutive to earnings by approximately 1 cent per share in fiscal year 2012.

Its most famous location is New York Running at Time Warner Center near Columbus Circle in New York City. It also operates a New York Running Co. on the upper East Side of Manhattan, according to www.therunningcompany.net.  Also in New York it operates Bronxville Running Co. in Bronxville, NY.

The company has five stores in New Jersey named after respective towns (Morristown Running Co., Princeton Running Co., Ridgewood Running Co., Summit Running Co., and Westfield Running Co.) as well as three Greater Boston Running Co. stores in Massachusetts (Hingham, Lexington and Newburyport). It has one store in Connecticut (Greenwich Running Co.). In the D.C. region, it operates two Georgetown Running Co. locations, one in Washington, D.C. and one in Chevy Chase, MD.

Down south, it operates three Texas Running Company locations, including two in Austin and one in Sugar Land, TX. It has one Florida Running Company location in Coconut Grove, FL.





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