Canadian Tire acquires sporting goods business
Canadian Tire Corp. is dressing up its business. The company has entered into a transaction to acquire the Forzani Group Ltd., a premium sporting goods and apparel business.
In addition to tires, Canadian Tire offers a selection of sporting goods in Canada.
Under the terms of the transaction, Forzani shareholders will receive $26.50 per share from Canadian Tire.
“Canadian Tire is today strengthening its credibility as Canada’s ultimate authority in sports,” says Stephen Wetmore, president and CEO of Canadian Tire. “The acquisition of retail banners like Sport Chek and Sports Experts is a natural extension of our core sports business. Canadian Tire is on offence. This transaction will bring us to over 1,000 retail sports outlets across Canada, allowing us to serve nearly every need of every Canadian who plays or loves sports at every level.”
Canadian Tire Corp., with 482 stores, is one of two mass merchandiers in Canada that sell tires. Each store is operated by an independent business owner. Canadian Tire’s private brand tire, Motomaster, holds a 14% market share in Canada; Goodyear is number two with 12.4% (see Everything seems to be going Goodyear’s way in Canada).
Canadian Tire offers 11 brands: Motomaster, Pirelli, Continental, Goodyear, Michelin, General, BFGoodrich, Uniroyal, Hankook, Dunlop and Cooper.