Big 5 Sporting Goods Corporation (Nasdaq: BGFV), a prominent sporting goods retailer, has officially completed its merger with a partnership formed by Worldwide Golf and Capitol Hill Group. Following the fulfillment of customary closing conditions, including approval from Big 5’s stockholders, the merger has been finalized. Big 5 will now operate as a wholly owned subsidiary of the partnership.
Under the terms of the merger agreement, Big 5 stockholders are entitled to receive $1.45 per share in cash, representing a 36% premium over the company’s 60-day volume-weighted average trading price prior to the transaction’s announcement.
“This transaction marks an exciting new chapter for Big 5, allowing us to continue our legacy of delivering quality sporting goods at exceptional value while maximizing returns for our stockholders,” said Steven G. Miller, Chairman, President, and CEO of Big 5. “I want to extend my gratitude to our dedicated employees, loyal customers, and valued vendors who have supported Big 5 in the communities we serve.”
Worldwide Golf, a leading retailer of golf equipment, apparel, and accessories, and Capitol Hill Group, a private investment firm based in Bethesda, Maryland, bring complementary strengths to the partnership. Capitol Hill Group’s financial resources, combined with Worldwide Golf’s expertise in specialty retail, aim to provide Big 5 with the capital and strategic support needed to drive growth and strengthen its competitive position in the sporting goods sector across the western United States.
“Big 5 has a long and rich retail heritage in the Western United States,” said Ted Shin, CEO of Worldwide Golf and Capitol Hill Group. “We see tremendous potential to build on that legacy and enhance the sports experience for our current and future customers. This partnership will unlock new growth opportunities for Big 5, benefiting our customers, vendor partners, and employees.”
As part of the merger, Big 5’s common stock will no longer be listed on the Nasdaq Stock Exchange, and the company will cease to operate as a publicly traded entity. However, Big 5 will remain an independent company within Capitol Hill Group’s portfolio, leveraging the combined resources of the partnership to fuel its future endeavors.
Moelis & Company LLC acted as the financial advisor, and Latham & Watkins LLP served as the legal advisor to Big 5. Capitol Hill Group and its related entities were advised by Skadden, Arps, Slate, Meagher & Flom LLP, Holland & Knight LLP, and Sklar Kirsh LLP.
About Big 5 Sporting Goods Corporation
Big 5 Sporting Goods Corporation is a leading sporting goods retailer in the western United States, operating 410 stores under the “Big 5 Sporting Goods” name. The company offers a comprehensive product mix, including athletic shoes, apparel, accessories, and a wide range of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, and more. Each store averages 12,000 square feet, providing customers with a traditional sporting goods shopping experience.
For more information please visit www.big5sportinggoods.com
About Worldwide Golf
Founded in 1963, Worldwide Golf is a premier golf retailer with over 95 stores across 25 states and a robust e-commerce presence through platforms like worldwidegolfshops.com, globalgolf.com, and others. Operating under various regional sub-brands, Worldwide Golf has built a loyal following among golf enthusiasts and established a dominant position in the marketplace.
About Capitol Hill Group
Capitol Hill Group, founded in 1992 and based in Bethesda, Maryland, is a private investment firm with a diverse portfolio spanning retail, e-commerce, apparel, logistics, and real estate. The firm invests across various stages of company growth, from early-stage ventures to public equities.
This merger represents a significant milestone for Big 5 Sporting Goods Corporation, setting the stage for a new era of growth and innovation in the sporting goods retail industry.
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