May 14 (Bloomberg) -- Golf Town, the Canadian golf retailer owned by Omers Private Equity Inc., agreed to buy Golfsmith International Holdings Inc. for about $97 million to expand in the U.S.
The cash transaction may be completed in the third quarter, the companies said today in a statement. The price of $6.10 a share is 30 percent higher than Austin, Texas-based Golfsmith’s closing price on May 11.
The acquisition, which has been approved by both companies’ boards, would give Golf Town about 85 retail locations in the U.S. to complement its 54 stores in Canada. Golf Town started a U.S. expansion last year, adding six stores in the Boston area. The company now has seven units there.
Golfsmith rose 28 percent to $6.03 at 9:58 a.m. in New York for the largest intraday gain since Jan. 13, 2011. The shares had gained 47 percent this year in trading through May 11.
Omers Private Equity, based in Toronto, is the leveraged-buyout unit of the Ontario Municipal Employees Retirement System.
(Golfsmith will hold a conference call at 9 a.m. New York time on May 15. To listen, visit GOLF US <Equity> EVT <GO>.)
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