Big 5 Sporting Goods Goes Private in $112.7 Million Deal
Big 5 Sporting Goods Corp. no longer wants to be in the public eye of Wall Street.
The sporting goods retailer is set to be acquired by Worldwide Gold and Capital Hill Group in an all-cash transaction valued at $112.7 million. The deal includes the assumption of $71.4 million in credit line borrowings as of June 29, 2025.
“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,” Steven G. Miller, Big 5’s chairman, president and CEO, said.
Related Stories
Under the terms of the agreement, Big 5 shareholders will receive $1.45 per share in cash. The company said the per share cash amount represents a premium of “36 percent” to the retailer’s 60-day volume weighted average price.
You May Also Like
The transaction has already been approved by Big 5’s board, but is still subject to certain closing conditions. The deal is expected to close in the second half of 2025. Shares of the company’s common stock will no longer be listed on the Nasdaq Stock Exchange once the retailer becomes a private firm.
“After careful consideration of the transaction, Big 5’s board believes this all-cash transaction creates immediate and certain stockholder value,” the retailer said.
“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,” said Capitol HIll’s CEO Theodore Shin.
Bethesda, MD.-based Capital Hill is a private investment firm with diversified holdings that include retail. Worldwide Golf is a nationwide retailer of golf equipment, apparel, shoes and accessories. The partnership between the two combines Capitol Hill’s financial resources with Worldwide Golf’s retail operating expertise, a combination that is expected to provide both the capital and the strategic support to help grow Big 5’s positioning in the sporting goods category in retail.
Big 5 operates 414 full-line, big box stores averaging 12,000 square feet. Its assortment mix includes athletic shoes, apparel and accessories, as well as outdoor and athletic equipment.
Big 5 in April posted first quarter results that showed signs of financial struggles on it balance sheet. The net loss widened to $17.3 million from a net loss of $8.3 million in the same year-ago quarter. The retailer also said that net sales fell to $175.6 million versus net sales of $193.4 million a year ago, and same-store sales were down 7.8 percent for the quarter.
There’s been increased activity on the mergers and acquisitions front thus far this year. Department store retailer Nordstrom was taken private, and Skechers $9 billion go-private deal with 3G Capital, the biggest footwear buyout deal in history, is slated to close later this year. Also on the horizon is Dick’s Sporting Goods’ move to buy rival Foot Locker for $2.4 billion, which is set to be finalized before the end of 2025. Upcoming is Caleres’ purchase of shoe brand Stuart Weitzman for $105 million, which is scheduled to close by the end of this summer.
Content Original Link:
" target="_blank">
