Big 5 Sporting Goods Soars on Stockholder Buyout Approval
Shareholders approve the acquisition by Worldwide Sports Group Holdings, propelling the stock up 2.5% as the company prepares to go private.
Shares of Big 5 Sporting Goods (BGFV) jumped 2.5% after the company announced that its stockholders have approved its acquisition by Worldwide Sports Group Holdings LLC. The deal, which will take the sporting goods retailer private, is valued at approximately $112.7 million.
The terms of the agreement state that Big 5 stockholders will receive $1.45 per share in cash. This represents a to the company's 60-day volume-weighted average price before the deal was announced. The transaction is expected to close around September 30, 2025, at which point Big 5's common stock will no longer be traded on the Nasdaq Stock Exchange.
This acquisition marks a new chapter for Big 5, which will continue to operate as an independent entity. The company aims to leverage the financial resources of Capitol Hill Group and the retail expertise of Worldwide Golf to and redefine its position in the market. The move was supported by independent proxy advisory firms ISS and Glass Lewis, who both recommended that shareholders vote in favor of the merger.
The market reaction to the initial announcement was positive, with Big 5's shares seeing an . While some analysts had a neutral outlook on the deal, citing the challenging retail environment, the general consensus was a 'Hold' rating for BGFV stock prior to the acquisition. The successful shareholder vote provides a clear path forward for Big 5 as it transitions from a public to a private company.