Major US tackle supplier sold in all-cash transaction for $112.7m

One of the largest suppliers of fishing tackle in North America has been sold in an all-cash transaction for $112.7m.

Big 5 Sporting Goods, which has 414 stores in the western United States, has been acquired by a partnership comprised of Worldwide Golf and the Capitol Hill Group.

“This transaction marks an exciting new chapter for the company that allows it to carry on its legacy of serving customers with quality sporting goods at exceptional value while maximising value for our stockholders,” said Steven G. Miller, Chairman, President and Chief Executive Officer of Big 5 Sporting Goods Corporation.

Worldwide Golf is a leading nationwide retailer of golf equipment, apparel, shoes and accessories, and the Capitol Hill Group is a Bethesda, Maryland, based private equity firm with diversified holdings in businesses, including those in retail.

The acquisition combines Capitol Hill’s financial resources with Worldwide Golf’s speciality retail expertise to provide Big 5 with the long-term capital and strategic support to re-energise growth and further build on its competitive position in the sporting goods section across its western US footprint.

“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 up 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 in the future.”

The transaction has been unanimously approved by the Big 5 Board of Directors and is subject to certain closing conditions, including the approval of its stockholders and is expected to close in the second half of this year.

Big 5’s common stock will no longer be listed on the Nasdaq Stock Exchange and the business will become a private company.