The Forzani Group has been bought by another Canadian retail giant for almost $800 million in a friendly, all-cash deal.
Canadian Tire will spend over $771 million to acquire the Calgary-based company.
Forzani's operates some of the best known sporting goods retailers in the country.
The deal will see Canadian Tire take control of Forzani Group Ltd. which includes Sport Chek, Athlete's World, Nevada Bob's Golf, and other retailers.
The Forzani Group started as the Forzani's Locker Room in 1974 with one small store in Calgary.
The brainchild of John Forzani, he says the idea for the store started because the Stampeders couldn't get proper footwear.
Within twenty years the group became the largest sporting retailer in the country.
Forzani says it's a bittersweet day.
"Little bit of sadness. One segment of life is going to change but great deal for the shareholders. I'm happier and sadder," said John Forzani.
The President and CEO of Canadian Tire, says the addition of another 500 retail sports outlets will give his company better access to sporty, younger customers who tend to shop in mall environments.
The transaction is valued at $26.50 per share, which is a 50 percent premium on the closing price of Forzani's stock on Friday.
The Forzani board of directors supported the deal unanimously.
Canadian Tire believes that by next year, it will save $25 million annually, due to synergies in its supply chain, marketing and international suppliers. Those savings are expected to grow to $35 million by 2014.
Canadian Tire currently employs more than 58,000 people and operates 485 stores across the country.
The Forzani corporate website says the company has 14,000 corporate and franchise employees of its own.
(With files from The Canadian Press and ctv.ca)
