Dick's Sporting Goods to buy Galyan's for $305 million

Published: Tuesday, June 22 2004 12:00 a.m. MDT

Dick's Sporting Goods Inc., a Pittsburgh-based retailer, agreed to buy Galyan's Trading Co. for $305 million in cash, adding 47 stores to its chain of 169 locations.

Galyan's has a store at The Gateway in Salt Lake City.

Galyan's shareholders will be offered $16.75 a share, or about a 51 percent premium to Monday's closing share price, Dick's said. The company said it expects the acquisition will add 1 cent to 2 cents a share to its earnings this year. The company also will assume $57 million in Galyan's debt.

Dick's said there is little overlap in store locations with Galyan's, based in Plainfield, Ind., so there will be only a few stores that may close. It was not more specific.

Freeman Spogli & Co. and Limited Brands Inc., which own 55 percent of Galyan's shares, have agreed to sell their holdings in the tender offer scheduled to begin June 28, Dick's said.

Dick's shares fell 60 cents to $28.60 at 4:15 in New York Stock Exchange composite trading. Galyan's shares rose 16 cents to $11.10 in Nasdaq Stock Market composite trading. The agreement was announced after regular trading hours.

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