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.
- CNBC ranks Utah 3rd best state for business;...
- Utahns' satisfaction with downtown Salt Lake...
- 3 simple steps for building financial...
- Advertising firm bans employees from wearing...
- UTA gains Davis County approval for bus rapid...
- New solar panels may help power a future with...
- Farmers markets to accept food stamps
- GOED announces incentives for 500 new Utah jobs
- US unemployment aid applications fall... 11
- Utah gas prices climb 14 cents from... 9
- Backlash stirs in US against foreign... 8
- DeseretNews.com continues to see... 6
- Kearns-Tribune, Deseret News ask judge... 4
- Smith's store to anchor development at... 3
- Balancing act: Fight workplace bullying... 2
- Provo Power Plant faces demolition,... 2