Toronto -- Golf Town, Canada's largest specialty golf retailer, will acquire Golfsmith International Holdings Inc. for approximately $97.2 million. The Canadian company will pay $6.10 per share in cash, which represents a 30% premium over the Austin, Texas-based Golfsmith’s Friday closing stock price of $4.71.
Golfsmith operates 85 stores in the United States.
On the closing of the deal, Golfsmith CEO Martin Hanaka will assume the role of CEO of the combined company. Sue Gove, president, Golfsmith COO and CFO, will become the president and COO of the combined company.
“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 Hanaka.
Golf Town is owned by OMERS Private Equity and operates 54 stores across Canada and seven stores in the greater Boston area.
“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.