- Big 5 Sporting Goods is being acquired by Capitol Hill Group and Worldwide Golf in an all-cash deal that values the company at $112.7M, including $71.4M in assumed debt.
- The 414-store chain will be taken private and delisted from Nasdaq, with shareholders receiving $1.45 per share—a 36% premium over its 60-day average.
- The deal comes amid a wave of retail M&A activity, including Sycamore’s $10B bid for Walgreens Boots Alliance and 3G Capital’s $9.4B acquisition of Skechers.
Retail Shakeup Continues
Big 5 Sporting Goods, a legacy retail chain with 414 locations across the western US, is the latest company to be swept up in a wave of retail consolidation, reports CoStar. The El Segundo, CA-based retailer has entered a definitive merger agreement with Capitol Hill Group and Santa Ana-based golf chain Worldwide Golf.
The $112.7M all-cash deal includes the assumption of $71.4M in borrowings. Once finalized, Big 5 will become a privately held company under Capitol Hill’s investment umbrella.
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A Strategic Partnership
Capitol Hill brings financial muscle, while Worldwide Golf contributes deep operational expertise in specialty retail. The combined resources are expected to help Big 5 stabilize performance and reposition for long-term growth.
Despite its well-known brand and footprint, Big 5 has struggled to compete with larger rivals like Dick’s Sporting Goods. Ongoing inflationary pressures and reduced discretionary spending have further dented consumer demand.
Financials & Footprint
- Q1 FY2025 Net Sales: $175.6M (down from $193.4M YoY)
- Same-Store Sales: Decreased 7.8%
- Store Closures: 8 in Q1, 7 more planned; no new openings this year
- Average Store Size: ~12K SF
The company offers a wide product mix, from footwear and apparel to team sports and outdoor equipment. While it remains a fixture in the sporting goods space, its brick-and-mortar model has come under pressure in recent years.
Why It Matters
Private equity, meanwhile, is leaning back into retail—drawn not only by discounted valuations but also by the chance to modernize underperforming chains. For Big 5, the move to go private may offer the breathing room needed to streamline operations and pivot strategy.
The trend isn’t isolated. Alongside Big 5, major deals in 2024 include:
- Sycamore Partners: $10B buyout of Walgreens Boots Alliance
- 3G Capital: $9.4B acquisition of Skechers
- Dick’s Sporting Goods: $2.4B deal for Foot Locker
- Caleres: $105M acquisition of Stuart Weitzman
What’s Next
Once the deal closes—expected later this year—Big 5 will delist from Nasdaq and operate independently within Capitol Hill’s portfolio. With new capital and retail know-how, the company hopes to regain its footing in a rapidly evolving retail landscape.
