Mike Ashley eyes American Golf takeover

By

Barbara Santamaria

Published
Oct 8, 2018

Sports Direct is understood to be amongst a small group of interested parties bidding for American Golf, the UK’s largest specialist golf retailer.

Mike Ashley’s company seems to be in acquisition mode, after buying House of Fraser out of administration for £90m in August. But unlike House of Fraser, American Golf is to be sold on a solvent basis, sources insisted.

Sports Direct has also recently shown interest in buying Evans Cycles and is said to be battling JD Sports Fashion and Halfords for the UK bike chain.

American Golf has more than 130 stores across the UK and Ireland, and its owner, private equity firm Sun European Partners, is seeking a rapid sale, Sky News reported. It was acquired in 2012 during a period of growing golf participation in the UK, but the business was hit by the unseasonal weather in winter and summer this year. Additionally, golf participation has declined over the last few years, and was down by 8.9% in 2016, according to accounts filed last year.

JD Sports has also considered bidding for the company, according to news reports. Deloitte, which is advising on the deal, is hoping to make an announcement as early as next week.