Cataloger/retailer the GolfWorks has agreed to be acquired by rival Golf Galaxy. Eden Prairie, MN-based Golf Galaxy will pay approximately $4 million in cash and 150,000 shares of stocks valued at approximately $4.5 million.
The acquisition is expected to close in early March. Newark, OH-based GolfWorks will operate as a wholly owned subsidiary of Golf Galaxy. In addition to its domestic operations–which include a catalog, an e-commerce site, an assembly and distribution center, and a customer contact center–GolfWorks has an operating division in Ontario. It sells both proprietary components and brand-name shafts and grips.
Golf Galaxy, which sells golf equipment, components, and accessories, operates 49 stores in 23 states, as well as an e-commerce site. It plans to feature a GolfWorks “store in a store” in 29 of its stores by mid-May and in all its stores by the fall.
GolfWorks founder/chairman Ralph Maltby and CEO Mark McCormick will join Golf Galaxy’s management team. GolfWorks’ roughly 100 employees will be retained as well.