Golf Galaxy Acquires The GolfWorks
Eden Prarie, Minn., Golf Galaxy, Inc. completed its acquisition of club-making tools and supply company The GolfWorks. The acquisition comes two days after competitor Golfsmith International filed plans with the Securities and Exchange Commission to launch an initial public offering worth approximately $115 million. Golf Galaxy paid a combination of $3.7 million in cash and assumed $5.4 million in debt from The GolfWorks, which reported net sales of $24.5 million in fiscal 2005. Golf Galaxy currently operates 52 stores in 23 states along with its e-commerce Web site.
CVS Reaches Settlement Over Tobacco Sales
Providence, R.I., CVS Corp. reached a settlement with 42 states and Washington D.C., promising to strengthen practices that keep minors from buying tobacco products. A company spokesman said although the agreement isn’t an admission of wrongdoing, CVS officials signed it to head off legal action threatened by several states for past violations. The pharmacy chain agreed to check the identities of customers who attempt to purchase tobacco products if they look younger than 27. CVS officials also agreed not to use self-service displays or vending machines to sell tobacco products and to train employees on state and local laws regulating tobacco sales. The company also will hire an independent monitor to check its compliance at 5,400 stores nationwide, and prosecutors can still bring legal action if the company fails to adhere to the settlement. Officials did not disclose the cost of the agreement.
Movie Gallery Looks to Sublease at 2,200 Locations
Dothan, Ala., Movie Gallery, Inc. said it entered a management agreement and alliance with Excess Space Retail Services, Inc. to explore opportunities to sublease space at more than 2,200 existing Movie Gallery and Hollywood Video stores. Movie Gallery expects retail partners to occupy about 2,500 sq. ft. at each location. “In addition to the incremental revenue we expect to realize through subleasing portions of the stores, we look forward to the additional traffic that our retail partners will generate,” said Keith Cousins, executive VP and chief development officer, Movie Gallery, Inc. “By taking advantage of our outstanding retail presence, we expect this initiative to improve our operating results and create value for our shareholders.”