Lifestyle Sports bought for €40m

LIFESTYLE SPORTS has been taken over in a deal believed to be worth around €40 million.

Stafford Holdings, the family- owned fuel and property group whose interests include Campus Oil and Actons Hotel in Kinsale, said it wanted the 71-strong Lifestyle chain of sports shops to diversify its interests and give it access to a high-growth retailing sector.

Lifestyle, which recorded pre-tax profits of €5.5 million in the year to October 2004 and employs around 900 people, was the subject of a management buyout from the Tesco group in 1997. Seven directors, backed by venture capital group ACT, took control of the company and built up revenues from €38m in 1997 to €145m this year.

Lifestyle almost doubled the number of its outlets over the past eight years and has jumped from number three to number one under its current management.

The deal announced yesterday will leave Lifestyle's directors in place, but they will be joined on the board by Stafford Holdings chief executive Mark Stafford, who will take up the role of chairman.

Mr Stafford said: "The prospects for further growth are excellent, given its inherent attributes and, as such, it is an ideal diversification vehicle for Stafford Holdings."

The company will proceed with plans to open up to four new stores in the coming year. It opened nine new stores over the past 12 months.

Lifestyle managing director Andy Sharkey, a former shareholder in the company, said the deal would add momentum to the company's plans.

"The support of a committed long-term investor provides financial strength to expand further and I, along with the management team, really look forward to realising this growth potential over the coming years," he said.

Mr Sharkey will share in a payout with fellow executive directors John Mitchell, Andrew Towell, Tony McEntee and Harry Kenny.

Neither side would confirm the value of the deal but industry sources said Lifestyle's profitability and current turnover meant it could be worth up to €40m.

The deal will be a significant boost to the Stafford portfolio. The group's main operating companies Campus Oil, Stafford Fuels, Stafford Shipping, Aztec Properties and the

Glenview Hotel employ around 350 people and generated revenues of over €230m last year.