Golf Town, a Canadian specialty golf retailer, announced today its plans of purchasing US-based Golfsmith International. Goldsmith's similar operations and leading standing in the US is what attracted Golf Town into the purchase at $6.10 per share. Subject to regulatory approvals and closing conditions, the purchase is expected to occur during the third quarter of 2012.
Owned by OMERS, a private equity and investment firm, Golf Town has 54 retail stores nationwide with 7 stores in the US, specifically the greater Boston area. Golfsmith’s operations include 85 retail locations across the US, a thriving Internet retail business as well as catalogue sales.
"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," said Don Morrison, Senior Managing Director and Canadian Country Head of OMERS Private Equity. "Together with management we look forward to enhancing the value proposition for the companies' loyal customers."
Golf Town’s acquisition of Goldsmith will lead to the creation of the world’s largest specialty golf retailer where customers will be able to purchase needed golf equipment, apparel and accessories.
"We are extremely excited about this combination. Together, the businesses will have a broad multi-channel offering of retail, online, mobile and catalogue throughout North America," said Ron Hornbaker, interim CEO of Golf Town.
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The transaction has been agreed upon by both Golf Town’s and Golfsmith’s board of directors. Once the transaction is final, Martin Hanaka will act as CEO for the joint company, Sue Grove will become President and COO and Ron Hornbaker will assume role of EVP-Stores
"We have been very pleased with the building momentum at Golfsmith and I am proud of the accomplishments that our team has made over the last three years in developing a solid foundation for long term growth. We hold Golf Town in the highest regard and believe them to be an ideal partner to take Golfsmith to the next stage of growth," said Martin Hanaka, CEO of Golfsmith.