Canadian Tire buys out Calgary sporting goods company
Posted May 9, 2011 7:46 am.
This article is more than 5 years old.
Canadian Tire is taking over a Calgary company responsible for some of the country’s largest sporting good retailers.
The deal to buy Forzani Group Ltd. is worth $771-million and Canadian Tire says they’ll complete the acquisition using $500-million in cash and short-term financing.
Forzani owns 500 stores, including chains like SportChek, Sports Experts, Athletes World and Nevada Bob’s Golf.
It’s a deal Liz Hamilton with Canadian Tire tells 660News will make them the ultimate authority in sports, with more than 1,000 stores across the country.
“Canadian Tire needs to go on the offence to strengthen our position as an ultimate authority in the categories that we’re best known and loved for,” she says. “The Forzani Group has a sporting goods offering that’s aligned with our main value proposition, which is to be the most trusted and valued partner through the jobs and joys of every day living in Canada.”
Canadian Tire already owned four per cent of Forzani’s shares, but the new deal lets them take ownership of the company.
The agreement works out to $26.50 per share. That’s a 50 per cent premium on the closing price of Forzani’s stock on Friday.
