Dick's will acquire the Eden Prairie, Minn.-based specialty chain for $18.82, and will continue to operate it separately. When the $225 million deal closes, expected to be in early 2007, Golf Galaxy will add its 61 stores, e-commerce sites and catalog sales to Dick's 294 units. Dick's also will continue to sell golf-related items.
"We wouldn't cannibalize each other any more than if we had remained independent," said Edward W. Stack, chairman and chief executive officer. Prior to the deal, Golf Galaxy had announced plans for new store openings in the mid-teens for 2007. Those plans remain intact, Stack said.
"We do see this as a growth vehicle," Stack said. Dick's also will keep to its plan of a 15% annual expansion. Dick's has completed its store openings for 2006, opening 26 units in the third quarter, and 39 stores for the entire year.
In the quarter, net income increased to $7.8 million compared with $4.2 million in 2005. Net sales for the quarter increased 22% to $708.3 million while comparable store sales increased 8.9%, far above the 3% - 4% increase projected in August.
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