Golf Town Income Fund has entered into a definitive Transaction Agreement with OMERS Capital Partners for all of the assets of Golf Town Limited Partnership to be acquired for proceeds equal to CA$17.15 ($16.28) per fully diluted share, or approximately CA$214.4 million ($202.5 mm). At the current sale price, OMERS picks up Golf Town for slightly less than the CA$220.1 million ($194.1 mm) in sales the retailer reported for fiscal 2006.


The completion of the transaction is subject to the approval of Golf Town's Unitholders. Golf Town and OCP expect to close the transaction on or about September 28, 2007.


Golf Town also reported that Q2 sales grew 14.9% to CA$94.3 million ($85.8 mm) from CA$82.1 million ($73.1 mm) recorded for the comparable period in 2006. The growth in sales was attributable to the addition of new stores and strong same store sales of 3.6%. Mangement said sales started late in the season, with strong sales in May and June driving the quarterly growth.


Gross profit slipped 10 basis points to 36.1% of sales from 36.2% in the year-ago quarter. SG&A expenses, meanwhile decreased 40 basis points to 18.1% of sales from 18.5% last year, more than offsetting the increase in gross margins. Net income increased 8.1% to CA$10.9 million ($9.9 mm) compared to CA$10.1 million ($9.0 mm) last year.