Mergers, acquisitions and consolidation have been a part of the headlines on the golf manufacturing side in recent weeks, but now the golf retail space is getting in on the game and in a big way.
Golf Town, the largest golf retailer in Canada with 54 stores, had begun expanding in the U.S. in the last two years by opening seven large stores in the Boston area. Today, it announced an even larger expansion: It will purchase U.S. retail giant Golfsmith.
Golf Town, which is owned by Toronto-based OMERS private equity firm, said Monday it has signed a definitive merger agreement to purchase Golfsmith International Holdings for $6.10 per share. Golfsmith closed at $4.71 on Friday. Golfsmith, which was founded 40 years ago as a clubmaking supply company but has since grown to become the largest golf-specialty retailer in the U.S. with 85 stores, had previously announced that it was pursuing strategic alternatives including the sale of the company. With 15.81 million shares oustanding, the Golf Town purchase price adds up to a little more than $96.4 million.
In a press release, Don Morrison, Senior Managing Director and Canadian Country Head of OMERS Private Equity said, ""Golfsmith is a company that we have admired for years. This transaction will give us a formidable footprint in North America and will also provide a strong platform for future growth. Together with management we look forward to enhancing the value proposition for the companies' loyal customers."