Dick’s takes a swing at Golf Galaxy

To create more market share for itself in the multi-billion-dollar golf industry, Dick’s Sporting Goods Inc. is acquiring Golf Galaxy Inc.

Dicks, No. 143 in the Internet Retailer Top 500 Guide to Retail Web Sites, is paying about $225 million to acquire Golf Galaxy, No. 421 in the Internet Retailer Top 500 Guide to Retail Web Sites. Under the terms of the agreement, each outstanding share of Golf Galaxy common stock will be converted into the right to receive $18.82 per share in cash, without interest. The agreement also provides for the assumption of outstanding employee stock options and warrants of Golf Galaxy. The agreement is expected to be finalized by June.

"Golf Galaxy is a rapidly growing, profitable company which we believe is the best in the specialty golf category,” says Edward W. Stack, chairman and CEO of Dick`s Sporting Goods.

Dick’s Sporting Goods, which uses GSI Commerce to operate its e-commerce site, is purchasing a golf equipment retailer with a growing Internet sales channel. The Eden Prairie, MN-based Golf Galaxy, which operates 65 stores, works with Golf Club Exchange. Under the agreement, Golf Club Exchange helps Golf Galaxy expand and operate its auctions program, which now includes GolfClubExchange.com, GolfGalaxyAuctions.com and listing and selling used golf equipment on eBay. Golf Galaxy now offers more than 2,000 pre-owned golf clubs on the various auctions.