Big 5 Sporting Goods Corporation Enters Into Definitive Agreement to Be Acquired by a Partnership Comprised of Worldwide Golf and Capitol Hill Group
Big 5 Sporting Goods (Nasdaq: BGFV) has announced a definitive merger agreement to be acquired by a partnership between Worldwide Golf and Capitol Hill Group in an all-cash transaction valued at $112.7 million in enterprise value, including approximately $71.4 million in credit line borrowings.
Under the terms of the agreement, Big 5 stockholders will receive $1.45 per share in cash, representing a 36% premium to the company's 60-day volume weighted average price. The transaction has been unanimously approved by Big 5's Board of Directors and is expected to close in the second half of 2025, subject to stockholder approval and other closing conditions.
Following the completion of the transaction, Big 5 will become a private company and will be delisted from the Nasdaq Stock Exchange. The company will continue to operate as an independent entity within the Capitol Hill Group portfolio, leveraging the combined resources of the partnership to enhance its competitive position in the western United States sporting goods retail sector.
Big 5 Sporting Goods (Nasdaq: BGFV) ha annunciato un accordo definitivo di fusione per essere acquisita da una partnership tra Worldwide Golf e Capitol Hill Group in un'operazione interamente in contanti valutata 112,7 milioni di dollari in termini di valore d'impresa, inclusi circa 71,4 milioni di dollari di linee di credito utilizzate.
Secondo i termini dell'accordo, gli azionisti di Big 5 riceveranno 1,45 dollari per azione in contanti, rappresentando un premio del 36% rispetto al prezzo medio ponderato per volume degli ultimi 60 giorni. L'operazione è stata approvata all'unanimità dal Consiglio di Amministrazione di Big 5 e si prevede che si concluda nella seconda metà del 2025, soggetta all'approvazione degli azionisti e ad altre condizioni di chiusura.
Al completamento dell'operazione, Big 5 diventerà una società privata e verrà rimossa dalla quotazione al Nasdaq. L'azienda continuerà a operare come entità indipendente all'interno del portafoglio di Capitol Hill Group, sfruttando le risorse combinate della partnership per rafforzare la sua posizione competitiva nel settore della vendita al dettaglio di articoli sportivi negli Stati Uniti occidentali.
Big 5 Sporting Goods (Nasdaq: BGFV) ha anunciado un acuerdo definitivo de fusión para ser adquirida por una asociación entre Worldwide Golf y Capitol Hill Group en una transacción completamente en efectivo valorada en 112,7 millones de dólares en valor empresarial, incluyendo aproximadamente 71,4 millones de dólares en préstamos de línea de crédito.
Bajo los términos del acuerdo, los accionistas de Big 5 recibirán 1,45 dólares por acción en efectivo, lo que representa una prima del 36% sobre el precio promedio ponderado por volumen de 60 días de la compañía. La transacción ha sido aprobada por unanimidad por el Consejo de Administración de Big 5 y se espera que se cierre en la segunda mitad de 2025, sujeto a la aprobación de los accionistas y otras condiciones de cierre.
Tras la finalización de la transacción, Big 5 se convertirá en una empresa privada y será retirada de la Bolsa Nasdaq. La compañía continuará operando como una entidad independiente dentro de la cartera de Capitol Hill Group, aprovechando los recursos combinados de la asociación para mejorar su posición competitiva en el sector minorista de artículos deportivos en el oeste de Estados Unidos.
빅 5 스포츠 용품(Big 5 Sporting Goods, 나스닥: BGFV)는 Worldwide Golf와 Capitol Hill Group 간의 파트너십에 의해 인수되는 확정 합병 계약을 발표했으며, 이는 약 1억 1,270만 달러의 기업 가치로 평가되는 전액 현금 거래입니다. 여기에는 약 7,140만 달러의 신용 대출금이 포함됩니다.
계약 조건에 따라 빅 5 주주들은 주당 1.45달러의 현금을 받게 되며, 이는 회사의 60일 거래량 가중 평균 가격 대비 36%의 프리미엄에 해당합니다. 이 거래는 빅 5 이사회에서 만장일치로 승인되었으며, 주주 승인 및 기타 종결 조건에 따라 2025년 하반기에 완료될 예정입니다.
거래 완료 후 빅 5는 비상장 회사가 되며 나스닥 증권거래소에서 상장 폐지됩니다. 회사는 Capitol Hill Group 포트폴리오 내 독립 법인으로 계속 운영되며, 파트너십의 결합된 자원을 활용해 미국 서부 스포츠 용품 소매 부문에서 경쟁력을 강화할 계획입니다.
Big 5 Sporting Goods (Nasdaq : BGFV) a annoncé un accord définitif de fusion pour être acquis par un partenariat entre Worldwide Golf et Capitol Hill Group dans le cadre d'une transaction entièrement en espèces évaluée à 112,7 millions de dollars en valeur d'entreprise, incluant environ 71,4 millions de dollars d'emprunts sur ligne de crédit.
Selon les termes de l'accord, les actionnaires de Big 5 recevront 1,45 dollar par action en espèces, représentant une prime de 36 % par rapport au prix moyen pondéré par volume sur 60 jours de la société. La transaction a été approuvée à l'unanimité par le conseil d'administration de Big 5 et devrait être finalisée au second semestre 2025, sous réserve de l'approbation des actionnaires et d'autres conditions de clôture.
Après la finalisation de la transaction, Big 5 deviendra une société privée et sera retirée de la cotation au Nasdaq. L'entreprise continuera d'opérer en tant qu'entité indépendante au sein du portefeuille de Capitol Hill Group, tirant parti des ressources combinées du partenariat pour renforcer sa position concurrentielle dans le secteur de la vente au détail d'articles de sport dans l'ouest des États-Unis.
Big 5 Sporting Goods (Nasdaq: BGFV) hat eine endgültige Fusionsvereinbarung angekündigt, durch die das Unternehmen von einer Partnerschaft zwischen Worldwide Golf und Capitol Hill Group in einer rein bar bezahlten Transaktion übernommen wird, die einen Unternehmenswert von 112,7 Millionen US-Dollar umfasst, einschließlich etwa 71,4 Millionen US-Dollar an Kreditlinienkrediten.
Gemäß den Bedingungen der Vereinbarung erhalten die Aktionäre von Big 5 1,45 US-Dollar pro Aktie in bar, was einer Prämie von 36 % gegenüber dem volumengewichteten Durchschnittspreis der letzten 60 Tage entspricht. Die Transaktion wurde einstimmig vom Vorstand von Big 5 genehmigt und soll in der zweiten Hälfte des Jahres 2025 abgeschlossen werden, vorbehaltlich der Zustimmung der Aktionäre und weiterer Abschlussbedingungen.
Nach Abschluss der Transaktion wird Big 5 ein privates Unternehmen und von der Nasdaq-Börse genommen. Das Unternehmen wird weiterhin als eigenständige Einheit innerhalb des Portfolios der Capitol Hill Group operieren und die kombinierten Ressourcen der Partnerschaft nutzen, um seine Wettbewerbsposition im Einzelhandel für Sportartikel im Westen der Vereinigten Staaten zu stärken.
- All-cash transaction offering immediate value to shareholders at 36% premium
- Unanimous board approval indicating strong confidence in the deal
- Company will maintain operational independence post-acquisition
- Access to long-term capital and strategic support from acquirers
- Combination of Capitol Hill Group's financial resources and Worldwide Golf's retail expertise
- Significant credit line borrowings of $71.4 million being assumed
- Delisting from Nasdaq will reduce liquidity for current shareholders
- Loss of public company status and associated transparency
Insights
Big 5's acquisition at $1.45/share (36% premium) creates immediate value but reflects challenging retail environment.
This all-cash acquisition of Big 5 Sporting Goods represents a strategic move by Worldwide Golf and Capitol Hill Group to expand their retail portfolio. At
The transaction structure reveals important financial details about Big 5's current position. With approximately
The unanimous board approval and focus on "immediate and certain stockholder value" suggests the board viewed this as the optimal exit opportunity in a challenging retail environment. The
For Big 5's investors, this deal provides certainty in an increasingly competitive sporting goods landscape. The acquirers gain a established retail network across the western United States, which complements Worldwide Golf's specialty retail expertise. Capitol Hill Group's involvement indicates they see potential to revitalize the Big 5 business model with additional capital and strategic support.
Post-closing, Big 5 will operate as an independent entity within Capitol Hill Group's portfolio, suggesting operational continuity while pursuing new growth strategies. The transaction is expected to close in H2 2025, subject to stockholder approval and customary closing conditions.
EL SEGUNDO, Calif. and BETHESDA, Md., June 30, 2025 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods Corporation (Nasdaq: BGFV) (the “Company” or “Big 5”), a leading sporting goods retailer, today announced it has entered into a definitive merger agreement (the “Agreement”) to be acquired by a partnership comprised of Worldwide Golf and Capitol Hill Group, in an all-cash transaction valued at approximately
Pursuant to the Agreement, subject to the terms and satisfaction of the conditions thereof, Big 5 stockholders will receive
“This 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 maximizing value for our stockholders,” said Steven G. Miller, Chairman, President and Chief Executive Officer of Big 5 Sporting Goods Corporation. “I want to thank our dedicated employees, loyal customers and valued vendors who continue to support Big 5 in each of the communities we serve.”
Worldwide Golf is a leading nationwide retailer of golf equipment, apparel, shoes and accessories. Capitol Hill Group is a Bethesda, Maryland-based private investment firm with diversified holdings, including retail. This acquisition combines Capitol Hill Group’s financial resources with Worldwide Golf’s specialty retail expertise to provide Big 5 with the long-term capital and strategic support to re-energize growth and further build on its competitive position in the sporting goods retail sector across its western United States footprint. Big 5 will remain an independent company within the Capitol Hill Group portfolio and leverage the combined resources of the partnership.
“We are thrilled to support the next stage of the company’s evolution,” said Theodore Shin, Chief Executive Officer of Capitol Hill Group. “Big 5 has built an impressive foundation as a leading bricks and mortar sporting goods retailer. We also admire the deep history and culture of the company, and look forward to carrying that forward into the future.”
The transaction, which has been unanimously approved by Big 5’s Board of Directors (“Board”), is subject to certain closing conditions, including the approval of Big 5’s stockholders, and is expected to close in the second half of 2025, subject to the satisfaction of those conditions. After careful consideration of the transaction, Big 5’s Board believes this all-cash transaction creates immediate and certain stockholder value. Upon completion of the transaction, Big 5’s common stock will no longer be listed on the Nasdaq Stock Exchange, and Big 5 will become a private company.
Moelis & Company LLC served as financial advisor and Latham & Watkins LLP served as legal advisor to the Company. Skadden, Arps, Slate, Meagher & Flom LLP, Holland & Knight LLP, and Sklar Kirsh LLP served as legal advisors to Capitol Hill Group and its related entities.
About Big 5 Sporting Goods Corporation
Big 5 is a leading sporting goods retailer in the western United States, currently operating 414 stores under the “Big 5 Sporting Goods” name. Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 12,000 square feet. Big 5’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf, and winter and summer recreation.
About Worldwide Golf
Worldwide Golf is a leading golf retailer in the United States and Canada. Serving golfing communities since 1963, the company has grown from 1 retail store in San Diego to 95+ stores across 25 states and built a complementary e-commerce presence through multiple e-commerce sites, including worldwidegolfshops.com, globalgolf.com, fairwaystyles.com, coolclubs.com and getclubs.com, among others. The company operates under multiple regional sub-brands, including Roger Dunn Golf Shops, Edwin Watts Golf Shops, Golfers’ Warehouse, The Golf Mart, Van’s Golf Shops, Uinta Golf, Las Vegas Golf Superstore, Bobick’s, Global Golf Outlet, Mike’s Golf Outlet, Cool Clubs and Golfdom. Over its multiple decades, Worldwide Golf has gained a loyal following with golf enthusiasts and maintained a dominant position in the marketplace.
About Capitol Hill Group
Capitol Hill Group is a private investment firm founded in 1992 and is based in Bethesda, Maryland. The firm invests across various stages of company growth from early-stage venture to public equities. The firm currently has private investments in various sectors, including brick and mortar retail, e-commerce, apparel, logistics and real estate.
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the federal securities laws, including safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this communication that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the proposed acquisition of Big 5 Sporting Goods Corporation (“Big 5”) and the expected timing thereof. In some cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “approach,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “goal,” “intend,” “look,” “may,” “mission,” “plan,” “possible,” “potential,” “predict,” “project,” “pursue,” “should,” “target,” “will,” “would,” or the negative thereof and similar words and expressions.
Forward-looking statements are based on Big 5, Worldwide Golf and Capitol Hill Group’s management’s current expectations, estimates, projections, beliefs and assumptions made by Big 5, Worldwide Golf and Capitol Hill Group, all of which are subject to change. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond Big 5, Worldwide Golf and Capitol Hill Group’s control, and are not guarantees of future results. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements and you should not place undue reliance on any such statements, and caution must be exercised in relying on forward-looking statements. The following factors could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: (i) the proposed merger may not be completed in a timely manner or at all or that the approval of Big 5’s stockholders is not obtained; (ii) the failure to realize the anticipated benefits of the proposed merger; (iii) the possibility that competing offers or acquisition proposals for Big 5 will be made; (iv) the possibility that any or all of the various conditions to the consummation of the merger may not be satisfied or waived; (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger, including in circumstances which would require Big 5 to pay a termination fee or other expenses; (vi) the effect of the announcement or pendency of the merger on Big 5, Worldwide Golf or Capitol Hill Group’s ability to retain and hire key personnel, or their respective operating results and business generally; (vii) there may be liabilities related to the merger that are not known, probable or estimable at this time or unexpected costs, charges or expenses; (viii) the merger may result in the diversion of Big 5, Worldwide Golf or Capitol Hill Group’s management’s time and attention to issues relating to the merger; (ix) there may be significant transaction costs in connection with the merger; (x) legal proceedings or regulatory actions may be instituted against Big 5, Worldwide Golf or Capitol Hill Group following the announcement of the merger, which may have an unfavorable outcome; (xi) Big 5’s stock price may decline significantly if the merger is not consummated; (xii) the ability of Worldwide Golf and Capitol Hill Group to integrate and implement their respective plans, forecasts and other expectations with respect to Big 5’s business after the completion of the proposed transaction and realize additional opportunities for growth and innovation; (xiii) Big 5, Worldwide Golf and Capitol Hill Group’s ability to implement their respective business strategies; (xiv) the risks related to Worldwide Golf and Capitol Hill Group’s financing of the proposed transaction; and (xv) the unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak of war or hostilities or current or future pandemics or epidemics, as well as Big 5, Worldwide Golf and Capitol Hill Group’s response to any of the aforementioned factors. In addition, a number of other important factors could cause Big 5’s actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements, including but not limited to those important factors discussed under the headings “Forward-Looking Statements,” “Risk Factors” and other sections of Big 5’s Annual Report on Form 10-K for its fiscal year ended December 29, 2024, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings made by Big 5, each as filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in Big 5’s other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investor Relations section of Big 5’s website at https://www.big5sportinggoods.com/store/company/investorrelations. These risks should not be considered a complete statement of all potential risks and uncertainty, and are discussed more fully, along with other risks associated with the proposed transaction, in the Proxy Statement (as defined below) to be filed with the SEC in connection with the proposed transaction. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
All forward-looking statements are expressly qualified in their entirety by such factors. Except as required by law, Big 5 does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise. These forward-looking statements should not be relied upon as representing Big 5’s views as of any date subsequent to the date of this communication.
Additional Information
This communication may be deemed solicitation material in respect of the proposed acquisition of Big 5. A special stockholder meeting will be announced soon to obtain stockholder approval in connection with the proposed merger. Big 5 expects to file with the SEC a proxy statement (the “Proxy Statement”), the definitive version of which will be sent or provided to Big 5 stockholders, and other relevant documents in connection with the proposed merger. This document is not a substitute for the Proxy Statement or any other document which Big 5 may file with the SEC. Investors and securityholders of Big 5 are urged to read the Proxy Statement and other relevant materials carefully and in their entirety when they become available because they will contain important information about the Company and the proposed merger. Investors may obtain a free copy of these materials (when they are available) and other documents filed by Big 5 with the SEC at the SEC’s website at www.sec.gov and at Big 5’s website at https://www.big5sportinggoods.com/store/company/investorrelations.
Participants in the Solicitation
Big 5 and certain of its directors, executive officers and other members of management and employees, under SEC rules, may be deemed to be participants in soliciting proxies from its stockholders in connection with the proposed merger. Information regarding Big 5’s directors and executive officers, including a description of their direct interests, by security holdings or otherwise, is contained in Big 5’s proxy statement for its 2025 annual meeting of stockholders (the “Annual Meeting Proxy Statement”), which was filed with the SEC on April 23, 2025, and will be set forth in the Proxy Statement and other materials to be filed with the SEC in connection with the proposed transaction (if and when they become available). To the extent holdings of Big 5’s securities by its directors or executive officers have changed since the amounts set forth in the Annual Meeting Proxy Statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. Additional information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be included in the Proxy Statement relating to the proposed transaction when it is filed with the SEC. Investors and security holders may obtain free copies of these documents using the sources indicated above.
Contact:
Big 5 Sporting Goods Corporation
Barry Emerson
Executive Vice President and Chief Financial Officer
(310) 536-0611
Investor Relations - ICR, Inc.
Jeff Sonnek
Managing Director
(646) 277-1263
Capitol Hill Group
Main Office
(202) 543-4212
FAQ
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