Saturday, April 19, 2014

Dick's Sporting Goods, Ch. 14: Merger and Acquisition Strategies

Over the past few years DSG has been busy acquiring sporting good businesses. These businesses include Chick's, Galyan's Trading Co., and Golf Galaxy. With no plans to merge in the near future DSG has set its sights on moving westward. DSG has a very strong presence east of the Mississippi River, but it is very spotty to the west. One of the big purchases and steps toward their own personal manifest destiny was to acquire Chick's who had built a name for itself out west.

In another article is seems as is DSG is not slowing down.

When asked about a possible acquisition of Bass Pro Shops, Cabela's or Sports Authority Inc., Kullman declined to be specific but said that Dick's is "an organic grower" that would consider opportunities that make strategic sense regardless of market valuation. He declined to comment further on potential targets.

I would look out for DSG in the future and more acquisitions. DSG must continue to grow to show profitability gains due to the trending Internet purchases. DSG is fending off Amazon and other dot coms as it continues to build its brick and mortar presence. 
http://www.thedeal.com/content/consumer-retail/dicks-seeks-acquisition-play.php

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