Oita Chuo Pacific Management Comments On KKR’s Academy Sports As They File For IPO

TOKYO--()--Financial executives at wealth management advisory Oita Chuo Pacific Management have commented on KKR & Co.'s sporting goods business Academy Sports + Outdoors as they confidentially file paperwork for an initial public offering that could happen before the end of this year.

The company is working on the potential public listing with Credit Suisse Group AG and KKR Capital Markets, according to data gathered by Oita Chuo Pacific Management. Other banks may be added to the lineup, and like every company considering an IPO, this may also create potential takeover interest.

"The Academy Sports overall earnings before interest, taxes, depreciation and amortization were $361 million for the 12 months leading to May 2. We believe the company could be valued around $2.5 billion or above which is a similar multiple to publicly traded rival Dick's Sporting Goods Inc.," commented Oita Chuo Pacific Management's Head of Corporate Equities, Michael Knight.

Since 2017, all companies have been permitted by the Securities and Exchange Commission to file early IPO paperwork without needing to make the details public.

"KKR has owned Texas-based Academy Sports since 2011 and has raised the company's revenue from $2.7 billion back in 2010 to today’s revenue of over $4.9 billion," commented Head of Wealth Management at Oita Chuo Pacific Management, Jonathan Marshall.

"Under the ownership of KKR, the sporting goods company has grown from 133 stores to over 250 stores in 16 states throughout the South and Midwest of the U.S.," Jonathan added.

Moody's Investors Service upgraded Academy's rating in June from "negative" to "stable" and said it believes "solid operating performance trends should continue over the near term, substantially reducing risks associated with the company's ability to refinance its $1.4 billion term loan due July 2022 in a timely and economical manner."

Academy Sports was last trading around 91 cents on the dollar, rebounding off a low of around 55 cents on the dollar in March.

About Oita Chuo Pacific Management

Oita Chuo Pacific Management is a recognized leader in wealth management advisory with offices located in the heart of Tokyo, Japan. Oita Chuo Pacific Management's mission is to be the most trusted partner for our clients, and continue to be a globally recognized wealth management company in years to come.

Contacts

Mr. Ralph Fumihiro, Head of Research.
Switchboard +81 3 6863 5404 | Email ralph.fumihiro@ocpmanagement.com
23F Shin-Marunouchi Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo, Japan.

Release Summary

Oita Chuo Pacific Management have commented on KKR's sporting goods business Academy Sports + Outdoors confidentially filing for IPO.

Contacts

Mr. Ralph Fumihiro, Head of Research.
Switchboard +81 3 6863 5404 | Email ralph.fumihiro@ocpmanagement.com
23F Shin-Marunouchi Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo, Japan.