OMERS Private Equity-owned retailer Golf Town is expanding south of the border by acquiring Golfsmith International Holdings Inc., a similar U.S.-based chain, in a deal valued at almost US$100 million.

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

The friendly takeover offer is 30% above Golfsmith’s stock price at the close of trading on Friday and about 55% 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%, at US$6.04 Monday morning on the Nasdaq.

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.”

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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