May 14, 2012 / 1:07 PM / 6 years ago

UPDATE 1-Canada's Golf Town to expand in US with Golfsmith buy

* Deal valued at about $97 mln

* Martin Hanaka to become CEO of combined company

* Deal expected to close in the third quarter of 2012

May 14 (Reuters) - Golfsmith International Holdings Inc 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.

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