Big 5 Sporting Goods Announces Acquisition by Management.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Oct. 9, 1997--Big 5 Sporting Goods Thursday announced a transaction, valued at approximately $250 million, in which present management would acquire a majority interest in the company.

The acquisition will be led by Robert W. Miller, chairman, chief executive officer and one of the original founders of the company, and his son, Steven G. Miller, president and chief operating officer. Following the transaction, more than 200 Big 5 employees will own equity in the company, representing in excess of 50 percent of its outstanding shares.

"This transaction ensures that the company will continue on its chartered course of over 40 years, one which has consistently offered outstanding value and service to our customers," said Robert Miller.

Big 5 Sporting Goods is the leading chain of sporting goods stores in the western United States, with 202 stores in nine states and revenues in excess of $400 million. The company has been in business for 42 years and is widely viewed as being one of the most successful sporting goods chains in the country.

Big 5's current majority shareholder, Leonard Green & Partners L.P., a Los Angeles-based private merchant banking firm, led a management buyout of the company in 1992. As part of the transaction announced Thursday, Leonard Green & Partners will retain a meaningful, but minority, investment in the company and assume a less active role.

"After five highly successful years backing the Millers and their outstanding management team, we are proud to be part of a transaction that delivers control of the company to management. In a difficult and competitive retailing environment, this team has profitably built the preeminent traditional format sporting goods chain in the United States," said Jonathan D. Sokoloff, a partner with Leonard Green & Partners and director of Big 5.

"Big 5 management has always run the company as if they owned it. Now they can say that they do," added Jennifer Holden Dunbar, another partner of Leonard Green & Partners and director of Big 5.

Leonard Green & Partners specializes in organizing, structuring and sponsoring management buyouts of established companies. The firm currently has in excess of $500 million in private equity capital under management.

Donaldson, Lufkin & Jenrette Securities Corp. and Credit Suisse First Boston Corp. will advise the company on the transaction and arrange the financing. The transaction is scheduled to close by Thanksgiving of this year.

CONTACT: Big 5 Sporting Goods, El Segundo

Gary Meade, 310/536-0611