Big 5 Sporting Goods to go private as part of 112.7 million dollar acquisition

US retailer Big 5 Sporting Goods Corporation is preparing to go private after entering into a 112.7 million dollar merger agreement to be acquired by Worldwide Golf and Capitol Hill Group.

The deal, which includes around 71.4 million dollars in credit line borrowings and is subject to terms, will see Big 5 shareholders receive 1.45 dollars per share in cash, if approved. According to a regulatory filing, this sum reflects a premium of approximately 36 percent to the company’s 60-day volume weighted average price.

Big 5’s board, which unanimously approved of the deal, believes the all-cash transaction “creates immediate and certain stockholder value”. Upon the acquisition’s finalisation, the company will be taken off the Nasdaq Stock Exchange and become private.

By teaming up on the acquisition, golf retailer Worldwide Golf and Maryland-based private investment firm Capitol Hill Group intend to combine their respective qualities – retail expertise and financial resources – to provide Big 5 with long-term capital and strategic support in its mission to “re-energise growth”.

Big 5 will remain an independent company under the Capitol Hill Group portfolio. Stockholders of the retailer still need to approve of the agreement, however if done so, the deal is expected to close in the second half of 2025.

In a statement, Big 5’s chief executive officer, chairman and president, Steven Miller, said the “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 maximising value for our stockholders”.

Big 5, which currently has just over 400 stores in operation, reported a decline in net sales for the fiscal 2024 full year, seeing figures decrease from 884.7 million dollars in 2023 to 795.5 million dollars. This came as the company posted widening losses in the fourth quarter of the year, expanding from 8.9 million dollars to 20.9 million dollars.