JD Sports is set to acquire Hibbett Sports for $1.08 billion, aiming to expand its presence in the U.S. footwear market.
The English retailer’s acquisition of Hibbett follows its previous purchases of Shoe Palace on the West Coast and DTLR on the East Coast. Hibbett currently operates over 1,110 stores across 36 states in the U.S.
The move comes as Foot Locker, JD Sports’ U.S. rival, issues a profit warning for 2024. JD Sports anticipates that events such as the Euro soccer championships, the Paris Olympics, and the introduction of new sneaker and apparel styles will invigorate the market on both sides of the Atlantic.
Under the terms of the deal, JD Sports will pay $87.50 per share in cash, representing a 20% premium over Hibbett’s last closing price. In premarket U.S. trading, Hibbett’s shares rose by 18% to $85.70.
JD Sports plans to finance the acquisition and refinance Hibbett’s existing debt using its U.S. cash reserves of $300 million and a $1 billion extension to its current bank facilities, CNBC reports.
Additional Transaction Details
The Board of Directors of Hibbett has unanimously approved the definitive merger agreement and the transaction.
The transaction is expected to close in the second half of 2024, subject to receipt of Hibbett stockholder approval, receipt of required regulatory approvals, and the satisfaction of other customary conditions to closing. The transaction is not subject to a financing condition.
Under the terms of the definitive merger agreement, Hibbett has agreed to suspend the payment of dividends on its common stock, as well as the purchase of shares under its existing Stock Repurchase Program, through the closing of the transaction.
Following the closing of the transaction, Hibbett will join the JD Sports family of athletic footwear and fashion retail brands and will cease to be a publicly traded company.
Organizational Structure
Following the closing of the transaction, Mike Longo will continue to serve as President and Chief Executive Officer and Jared Briskin will take on the role of Chief Operating Officer of Hibbett. Hibbett will maintain its corporate headquarters in Birmingham, Alabama.
About Hibbett, Inc.
Headquartered in Birmingham, Alabama, Hibbett is a leading athletic-inspired fashion retailer with 1,169 stores, including Hibbett, City Gear, and Sports Additions outlets, across 36 states as of February 3, 2024.
Offering convenient locations, personalized customer service, and a range of top brands such as Nike, Jordan, New Balance, and Adidas, Hibbett caters to consumers both online and in-store.
About JD Sports Fashion plc
Established in 1981, JD Group (JD) is a global omnichannel retailer specializing in sports fashion brands. Through strategic partnerships with premium brands like Nike, Adidas, and The North Face, JD offers customers the latest exclusive products. JD’s vision is to inspire the emerging generation through a connection to the universal culture of sport, music, and fashion.
With a focus on global expansion, leveraging complementary concepts, and creating a lifestyle ecosystem of relevant products and services, JD operates 3,313 stores worldwide as of March 2, 2024, and is listed on the FTSE 100 index.