Golftown buys Golfsmith

[Gofish2]

Just announced !

[leftylucas]

The Canadian store or the American one??

[Break68]

Details please? Proof?

[Break68]

Anounced where?

[Break68]

http://ca.reuters.com/article/busine...84D0K220120514

[Break68]

http://www.theglobeandmail.com/globe...rticle2431833/

[Break68]

Golf Town buying Golfsmith in U.S. expansion bid

Toronto— The Canadian Press

Published Monday, May. 14, 2012 9:16AM EDT

Last updated Monday, May. 14, 2012 10:20AM EDT

Canadian specialty retailer Golf Town is expanding south of the border by acquiring Golfsmith International Holdings Inc. (GOLF-N), a similar U.S.-based chain, in a deal valued at almost $100-million (U.S.).

Golf Town will pay $6.10 per share in cash, or about $96.8-million, to acquire the 85-location golf equipment and clothing retailer.


The friendly takeover offer is 30 per cent above Golfsmith’s stock price at the close of trading on Friday and about 55 per cent above where the shares were when Golfsmith announced on March 1 it was seeking strategic alternatives.

Golfsmith shares were up $1.33, or 28.24 per cent, at $6.04 Monday morning on the Nasdaq.

Golf Town is owned by OMERS Private Equity, which manages funds for Ontario public-sector employees.

The Toronto-based retailer currently has 54 stores across Canada and seven in the Boston area and says the takeover of the U.S.-based concern will create the world’s largest specialty golf retailer.

“Golfsmith is a company that we have admired for years,” said Don Morrison, senior managing director and Canadian country head of OMERS Private Equity.

“This transaction will give us a formidable footprint in North America and will also provide a strong platform for future growth,” Mr. Morrison said.

Golfsmith CEO Martin Hanaka will take over from Golf Town CEO Ron Hornbaker as chief executive of the combined company after the deal closes, likely in the third quarter.

“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,” Mr. Hanaka said.

Sue Gove, Golfsmith’s chief operating officer and chief financial officer, will become president and COO of the combined company, while Mr. Hornbaker will assume the role of executive vice-president, stores.

The boards of both companies have approved the transaction. In Golfsmith’s case, approval involved company officers collectively holding a majority of the company’s outstanding shares and the transaction is not subject to further Golfsmith stockholder approval.

OMERS Private Equity manages more than $6.3-billion in private equity on behalf of the Ontario Municipal Employees Retirement System, which is one of Canada’s largest pension funds with some 420,000 members and more than $455-billion in net assets.

[Break68]

Hopefully this will be good for the Canadian Golf industry and good for the Canadian Golf shopper.

[shaner85]

No more $0.98 blemished golf grip sales...LOL...!

[jvincent]

Not sure if this is good or bad.

The Golfsmith retail stores in the US also carry tennis stuff. They have been de-emphasizing the clubmaking part of their business for many years now. I don't even bother getting their catalog anymore.

As a Golf retail shop Golftown has appeared to me to be pretty well run. The new top management is ex-Golfsmith and IIRC they have been losing money in the US.

[Break68]

The bad part I can see is that the:"Golfsmith CEO Martin Hanaka will take over from Golf Town CEO Ron Hornbaker as chief executive of the combined company after the deal closes, likely in the third quarter."
Having Golfsmith CEO takeover Golftown/Golfsmith is a very bad idea. Golfsmith is a horribly run company.

[gregnol]

bye bye golfsmith components i was really looking forward to seeing snake eyes offers

[rgk5]

The bad part I can see is that the:"Golfsmith CEO Martin Hanaka will take over from Golf Town CEO Ron Hornbaker as chief executive of the combined company after the deal closes, likely in the third quarter."
Having Golfsmith CEO takeover Golftown/Golfsmith is a very bad idea. Golfsmith is a horribly run company.

Yes, but OMERS is Hanaka's new boss and they will not tolerate any bad management practices.

[Swerve]

plus:

... while Mr. Hornbaker will assume the role of executive vice-president

Looks to me like Mr. Hornbaker will still be the one calling the shots... for whatever that's worth?

[Gofish2]

I work part-time for an OMERS company. They are not afraid to chop heads. They seek out redundancy and are quick to terminate unproductive workers. I think they can turn Golfsmith around.