Fairfax and CI Investments Buying Golf Town
CBJ — Prem Watsa’s Fairfax Financial and CI Investments are acquiring Golf Town from the retail chain’s U.S. parent, which is seeking protection from its creditors.
The deal is scheduled to close on Oct. 31 for what is an undisclosed sum. Fairfax and CI already own 40% of the debt of Golfsmith International — Golf Town’s U.S. parent.
Golf Town has 55 locations in Canada, but that number is expected to decrease following the sale with the lowest revenue generators likely to be shuttered.
Ontario-based pension fund OMERS bought the then publicly traded Golf Town in 2007 for $240 million, and then added U.S.-based Golfsmith to the company for an additional $97 million U.S. in 2012.
The chain has been caught up in an industry-wide financial crunch following a period of rapid expansion in what has become an extremely competitive industry.