Dick's Sporting Goods buys Galyan's

[CLTdude19]

Posted on Tue, Jun. 22, 2004

Dick's Sporting Goods buys Galyan's Trading Co.

RETAIL

NEW YORK - Dick's Sporting Goods Inc., a Pittsburgh-based retailer that operates stores in the Charlotte area, agreed to buy Galyan's Trading Co., which is building a store at SouthPark mall. Dick's will pay $305 million in cash and add 47 stores to its chain of 169 locations. Galyan's shareholders will be offered $16.75 a share, or about a 51 percent premium over Monday's closing share price, Dick's said in a statement. The company also will assume $57 million in Galyan's debt.Dick's said there is little overlap in store locations with Galyan's, an outdoor equipment and clothing retailer based in Plainfield, Ind., so there will be only a few stores that may close. It was not more specific. Dick's Web site lists five stores in the Charlotte region. 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 Monday 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. -- BLOOMBERG NEWS

-So what is going to happen to the Galyan's that is under construction at South Park Mall? I am unhappy about this news because I like Galyan's a lot more than Dick's. Dick's is just another Sports Authority. In my opinion I don't think many shoppers at Charlotte's upscale mall are going to be very happy about a Dick's going in!

[uptownliving]

Yes, the Gaylan's is going to open next month...so at least it is being built to their standard.

[Neo]

My guess is that it would be the equivalent of Acura. Owned by Honda but keeping the upscale feel and goods.

[appatone]

It's official, Galyan's will be changed to Dick's. SouthPark's new anchor is Dick's Sporting Goods. What a let down. It will be Galyan's for a while though, eight months, I believe.

[uptownliving]

Yeah...that is crazy to build a brand new store and then "renovate" it a few months later.

[49er]

Its certainly a knock to the prestige that southpark has worked so hard to build. Personally, I can go to a Dicks store anywhere. Southpark is more about stores you cant find in many places....other than the usual AE's, Gaps, B. Republics, etc.

[appatone]

Do you think SouthPark/Simon will "fight" this. Do you think they may somehow try to hold the chain in breach of contract and try to kick the tenant out before the change over to Dick's in favor of a more reputable tenant?

[49er]

Its hard to know if that would be legal or not. Dicks seems a little too everyday USA to be at Southpark these days. You know though, think about dept stores and shopping districts in downtown settings. The high dollar stores are usually close to everyday businesses, theres no separation. This might be good for SP because it will draw a broader group of shoppers.

[appatone]

I don't know. There are talks now of REI becoming an anchor tenant at Carolina Place. IMO, these retailers may be more suited to the opposite neighborhood. This is my reasoning.

In regards to broadening the demographic of shoppers:

I don't think that will happen. If people didn't shop at SouthPark before because they weren