Big 5 Sporting Goods Being Acquired

Big 5 Sporting Goods Corp. (El Segundo, Calif.) has entered a definitive merger agreement to be bought by a partnership involving Worldwide Golf (Santa Ana, Calif.) and Capitol Hill Group (Bethesda, Md.). The all-cash transaction for the 414-store chain is valued at about $112.7 million, including the assumption of $71.4 million in credit line borrowings as of June 29, the companies said in a news release.

“This transaction marks an exciting new chapter for Big 5 that allows the company to carry on its legacy of serving customers with quality sporting goods at an exceptional value while maximizing value for our stockholders,” said Big 5 President and CEO Steven Miller.

Worldwide Golf operates nearly 100 stores nationwide. Capitol Hill Group is a private investment firm with diversified holdings, including retail.

“We are thrilled to support the next stage of the company’s evolution,” said Capitol Hill Group CEO Theodore Shin. “Big 5 has built an impressive foundation as a leading bricks and mortar sporting goods retailer. We also admire the deep history and culture of the company, and look forward to carrying that forward into the future.”

The agreement calls for Big 5 stockholders to receive $1.45 per share in cash. That represents a premium of roughly 36% to the company’s recent 60-day volume weighted average price.

The transaction, which has been unanimously approved by Big 5’s board, is subject to certain closing conditions, including the approval of Big 5’s stockholders. It is expected to close in the second half of this year.