Hidary accuses Everlast of breaking merger agreement, threatens legal action

New York, July 3 - Hidary Group Acquisitions, Inc. claimed Everlast Worldwide Inc. has broken the terms of its agreement to acquire the company and warned that it is exploring all options including possible legal action.

Hidary said that it had not received the notices required under its agreement with Everlast after Everlast decided to be acquired by Brands Holdings Ltd. instead of Hidary, its original transaction partner.

In a filing with the Securities and Exchange Commission, Hidary also said that it believes its own revised proposal is better than Brands'.

On June 29, Everlast said it had amended its definitive agreement with Brands, upping the per-share price to $33 from $30.

The all-cash transaction is now valued at more than $182 million, according to a company news release.

Everlast's board approved the amended agreement.

Brands Holdings is a private company incorporated in England and Wales and a subsidiary of Sports Direct International plc, a publicly traded company listed on the London Stock Exchange.

New York-based Everlast designs, manufactures and markets boxing and fitness-related sporting goods equipment. The company terminated its previous merger agreement with Hidary Group Acquisitions, LLC and Hidary Group Acquisitions, Inc. and paid a $3 million termination fee.

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