Golf Town, Canada’s largest specialty golf retailer and a portfolio company of OMERS Private Equity, and Golfsmith International Holdings announced today that they have signed a merger agreement, pursuant to which Golf Town will acquire Golfsmith. The transaction will result in the creation of the world’s largest specialty golf retailer. “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.
Golfsmith International Holdings (NASDAQ:GOLF) has been in business for over 40 years and is a specialty retailer of golf equipment and related apparel and accessories. The company operates as an integrated multi-channel retailer with 85 retail locations across the United States, an Internet site and from its assortment of catalogues. Golfsmith sells branded merchandise as well as its proprietary products, clubmaking components and pre-owned clubs. The company is based in Austin, TX (www.golfsmith.com).
Golf Town is a specialty golf equipment, apparel and accessories retailer. The company is Canada’s largest golf retailer and has 54 stores throughout the country. Golf Town expanded into the US market in 2011 by opening 6 stores in the greater Boston area. The company was acquired by OMERS Private Equity in September 2007 and is based in Markham, ON (www.golftown.com).
OMERS Private Equity manages the private equity activities of OMERS, one of Canada’s largest pension funds. The group’s investment strategy includes the active ownership of businesses in North America and Europe. Sectors of interest include manufacturing, financial and business services, industrial and consumer products, transportation, and technology. Investment sizes range from $100 million to $500 million. The firm is located in Toronto, Canada and has $5.5 billion of investments under management (www.omerspe.com).
Upon the closing of the transaction, Martin Hanaka, CEO of Golfsmith, will assume the role of CEO of the combined company. Sue Gove, President, COO and CFO of Golfsmith will become the President and COO of the combined company and Ron Hornbaker will assume the role of EVP-Stores.
Atlantic Equity Partners III, L.P. and certain officers of Golfsmith, holding collectively a majority of Golfsmith’s outstanding shares of common stock, have executed a written consent approving the transaction and the transaction is not subject to further stockholder approval.
BMO Capital Markets and TD Securities are acting as financial advisors to Golf Town, and Lazard is acting as financial advisor to Golfsmith. Legal counsel is being provided by Weil, Gotshal & Manges for Golf Town and White & Case for Golfsmith.
