Dick's Sporting Goods Inc. to buy Golf Galaxy for $225 million

Dick's Sporting Goods Inc., the largest U.S. publicly traded sporting goods retailer, agreed Monday to buy rival Golf Galaxy Inc. for $225 million.

Golf Galaxy's stockholders will receive $18.82 a share, a 20 percent premium above Monday's closing price, Dick's said in a statement. Golf Galaxy's 61 stores, Internet site and catalog had $250 million in sales in the year through Aug. 26.

Dick's, based in Pittsburgh, said it expects the acquisition to add to earnings beginning the year ending early 2008. The shares have increased 59 percent since the company acquired Galyan's Trading Company Inc., an outdoor apparel and sports retailer, in July 2004 for $362 million.

Dick's CEO Edward Stack said the company will keep the Golf Galaxy brand name and current management and doesn't plan to close any stores. Dick's opened 26 stores in the quarter for a total of 294 stores as of Oct. 28.