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From NorthCountryNow:

http://www.northcountrynow.com/business/featurestories/default.asp

WiseBuys buys Hacketts in $6 million deal

Newcomer WiseBuys Stores, Inc. is buying Hacketts, one of the oldest retailers in the country, in a $6 million transaction.

WiseBuys chief financial officer and co-founder Tom Scozzafava of Gouverneur, a venture and capital markets investor and chief executive officer of Seaway Capital, announced the acquisition Friday after months of talks between the two North Country retailers regarding a merger or acquisition.

Many had believed that Hacketts would be the acquirer. The new company, at least, will be called Hacketts.

The companies together have 10 stores in northern New York, including a Hacketts in Potsdam and both a WiseBuys and a Hacketts in Canton..
Part of the deal is a management agreement for the retention of Hackett family members and Hacketts CEO Norm Garrelts.

WiseBuys was founded in 2003 by Scozzafava, former BJ’s Wholesale Clubs executive Joseph LaChausse, former Ames Department Stores chairman and CEO Joe Ettore, and other investors. The first store opened in Canton not a year after Ames closed all its stores. WiseBuys’ announced aim was to fill the discount retail gap left by Ames.

Along the way it has partnered with Payless Shoes, KB Toys, RadioShack and other consumer lines for departments within its stores.

The company says the five WiseBuys stores, in Canton, Gouverneur, Hamilton, Pulaski and Tupper Lake, have generated $35 million in revenues since 2003.
Hacketts’ roots go back to 1830, according to its web site, “when it was a ships’ chandelry, wholesale supplier and a traditional hardware store. During its evolution, it would also become a supplier of railroad equipment, builders and contractors supplies, plumbing supplies, steam fitting, tinsmithing, and a large foundry manufacturing many lines of metal plumbing items which you still find in existence today.”

Hacketts has stores in Ogdensburg, Potsdam, Canton, Massena, and Watertown, with premium hardware, houseware, garden, sportswear, sports gear, and gift departments.

After months of talks, things moved fast: In just the past month, according to announcements from Scozzafava, his company Seaway Capital acquired GS Carbon, a company focusing on emerging environmental carbon-reduction methods; Scozzafava, now GS Carbon’s chief, announced in a July 2 letter to GS Carbon shareholders its plan to acquire WiseBuys; GS Carbon announced on July 13 its acquisition of shares amounting to a majority voting interest in WiseBuys; WiseBuys announced July 17 the paying off a loan from the New York Business Development Corporation taken out when Scozzafava, Ettore and LaChausse started up WiseBuys; and WiseBuys announced Friday the agreement between WiseBuys owners and Hacketts on the acquisition of Hacketts.

“We are pleased to announce this agreement to acquire Hacketts,” Scozzafava said in Friday’s announcement. “WiseBuys and Hacketts combining into one entity is strategic for a number of reasons, including the sharing of managerial resources, increasing purchasing power, leveraging current advertising spending, and diversifying the combined company’s merchandise mix.

We anticipate taking the best from both companies and combining those qualities under one roof under the store brand ‘Hacketts’,” said Scozzafava.
The acquisition calls for a $1.5 million payment at closing and additional payments of $4.5 million over eight years.

The announcement says estimated annual revenues of the combined companies is $30 million.