ATLANTA—Dick’s Sporting Goods will soon have a strong footprint in the Southern California market. The Pittsburgh, Pa.-based retailer has entered into a definitive stock purchase agreement to acquire Chick’s Sporting Goods, which is based in Covina, Calif. Under terms of the agreement, Dick’s will pay approximately $40 in cash for the outstanding equity of Chick’s. Including the assumption of about $31 million of debt, the deal values Chick’s at approximately $71 million. Dick’s expects to complete the transaction on or before Dec. 31, 2007.
“Chick’s Sporting Goods is well-positioned in several important Southern California markets,” said Edward W. Stack, chairman and CEO of Dick’s. “This acquisition provides [Dick’s] with an immediate presence and market share in Southern California.”
Chick’s was founded in 1949 by James and Eleanor Chick and Hazel and Ralph Chambers, and employs more than 1,400 people in its 14 stores, corporate office and distribution center. The current owner and CEO, James M. Chick, is the grandson of the founders.
Dick’s has 340 stores in 36 states—primarily in the Eastern half of the U.S., plus 77 Golf Galaxy stores in 29 states. Dick’s acquired Golf Galaxy in February 2007.