EMERGE Commerce Ltd, a premium e-commerce brand portfolio, announced Thursday the signing of a definitive agreement to acquire all issued and outstanding shares of Tee 2 Green Ltd.
The company said T2G is a profitable, discount golf apparel and equipment business with a 38-year track record of operations, focused on the Canadian market. T2G achieved revenue of $6.4M, Adjusted EBITDA of $1M and positive net income of $700K in 2024 (unaudited). T2G is based in Ontario and was founded in 1987 by Robert J. Fell, who will continue to support T2G under EMERGE in his capacity as a consultant. T2G has a diversified revenue stream comprising two retail stores, dozens of roadshows, an online store, and a private label golf apparel brand, NORTHERN SPIRIT, added the company.
Ghassan Halazon, founder and CEO of EMERGE commented: “Following a year of tremendous progress, including 3 consecutive quarters of re-igniting positive organic growth, we are pleased to announce the immediately accretive and highly synergistic acquisition of Tee 2 Green, a profitable business with a multi-decade track record that complements our growing golf vertical. Importantly, the deal is expected to bring EMERGE to cash flow positive moving forward.”
Bob Fell, founder and CEO of Tee 2 Green added: “Over the past 38 years, we’ve built a reputable name for ourselves in the golf space, along with our loyal customers and valued vendors whom we are extremely grateful for. We take immense pride that our business was 100% bootstrapped, and has been profitable for years. Joining EMERGE enables T2G to access one of the most substantial golf customer databases in North America, deeper online expertise, and a much wider range of marketing and analytics. The T2G team looks forward to taking our combined golf business to new heights.”
Given EMERGE’s recently bolstered cash position from the sale of the SHOP domains to Shopify and the sale of the Carnivore Club assets announced in January 2025, as well as the flexible deal structure negotiated with T2G, EMERGE said it intends to close the transaction utilizing existing cash on hand.
“T2G will benefit from EMERGE’s extensive golf business, which includes UnderPar and JustGolfStuff, an organically growing and profitable vertical for EMERGE in 2024. T2G and EMERGE’s golf business already have a multi-year history of partnership and collaboration. EMERGE expects to utilize its 400,000+ golf subscriber database to help scale T2G’s business cost-effectively,” it said.
“We have seen great success with JustGolfStuff, our golf apparel and products business that we have grown nearly 10x over the last 5 years since acquiring it alongside UnderPar in late 2019. We already work closely with T2G, and the teams are intimately familiar and collaborative, thus reducing operational risk. The addition of T2G, expands our strategic golf roadmap which will now include discounted golf experiences, apparel, and products, both online and offline,” said Maurice Finn, COO of EMERGE’s Golf business.
EMERGE said it has agreed to pay to T2G, cash consideration of $1.1M on closing of the Transaction and $900K in deferred cash consideration over a 5-year period.
EMERGE will also be issuing common shares in the capital of EMERGE worth $200,000. As part of the transaction, EMERGE is also acquiring a minimum of $2.3M inventory over an 8-year payment plan. At December 31, 2024, T2G had total assets of $5.3M (including $2.9M in inventory) and total liabilities of $1.1M.
Following the Transaction, EMERGE said it will retain four brands across two main verticals. truLOCAL is its flagship grocery brand, a Canadian meat and seafood subscription service, and the golf vertical, which will now include UnderPar, JustGolfStuff, and Tee 2 Green.
“This acquisition marks the beginning of EMERGE’s next chapter which entails combining our organically growing business with this accretive, profitable, bolt-on acquisition, at favorable terms, and with clear “Day 1″ synergies,” added Halazon.
