Shares of Golfsmith International Holdings Inc. (NASDAQ: GOLF), a specialty retailer of gold equipment and related apparel and accessories, have risen sharply in trading today after the company agreed to be acquired by Canada’s largest specialty golf retailer, Golf Town.
GOLF shares rose to a new 52-week high of $6.05 in trading today. At last check, the stock was trading 28.24% higher at $6.04 on above average volume of 423,518.
Golfsmith and Golf Town entered into a definitive merger agreement under which Golf Town will acquire Golfsmith for $6.10 per share in an all cash transaction. The offer price from Golf Town represents a premium of 32.2% over GOLF’s volume-weighted average closing price over the last 30 trading days.
Commenting on the transaction, Martin Hanaka, CEO of Golfsmith, said that GOLF has been very pleased with the momentum it has built. Hanaka said that he is proud of the accomplishments that the team has made over the last three years in developing a solid foundation for long-term growth. He added that GOLF holds Golf Town in the highest regard and believe them to be an ideal partner to take the company to the next stage of growth.
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