Canada's Golf Town to expand in U.S. with Golfsmith buy

Mon May 14, 2012 9:07am EDT
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(Reuters) - Golfsmith International Holdings Inc GOLF.O said Canadian golf retailer Golf Town will take it private for about $97.2 million.

Golf Town, which is owned by private equity firm OMERS, will pay about $6.10 per share in cash, which represents a 30 percent premium to Golfsmith's Friday's close of $4.71.

On the closing of the deal, which is expected in the third quarter, Golfsmith's Chief Executive Martin Hanaka will assume the role of chief executive of the combined company.

With the deal, Golf Town will add Golfsmith's 85 retail locations in the United States. The Canadian company currently has 54 stores across Canada and has recently expanded into the U.S. market with 6 stores in the greater Boston area.

Golfsmith's shares closed at $4.71 on Friday on the Nasdaq.

(Reporting by Arpita Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty)