JD Sports to Acquire US Retailer Hibbett for $1.08 Billion Amid Expansion

By Leira Aquino

Apr 23, 2024 04:42 AM EDT

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JD Sports Fashion plc is set to acquire Hibbett Inc., an athletic-fashion retailer based in the United States, for approximately $1.08 billion.
(Photo : SAMEER AL-DOUMY/AFP via Getty Images)

JD Sports Fashion plc has announced plans to acquire US-based athletic-fashion retailer Hibbett Inc. for approximately $1.08 billion, marking a significant move in its expansion strategy across the southeastern United States.

The proposed acquisition involves JD Sports, the largest sportswear retailer in Britain, paying $87.50 per Hibbett share in cash.

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This offer represents a premium of about 20% over Hibbett's last closing price, signaling a strong investment from JD Sports in entering the US market more deeply.

To finance the deal and manage Hibbett's existing debt, JD Sports plans to utilize its existing US cash resources of $300 million and extend its bank facilities by an additional $1 billion. 

Upon completion of the acquisition, the combined entity is expected to generate significant revenues, with JD Sports estimating a total of approximately £4.7 billion in North America. 

This move will also boost the region's contribution to JD Sports' total sales, increasing it from the current 32% to around 40%.

This acquisition aligns with JD Sports' strategic vision to strengthen its position as a global leader in sports fashion retail. 

"Today is a significant milestone for JD Sports as we take this transformative step as a global leader in the sports fashion industry through this transaction with Hibbett," Régis Schultz, Chief Executive Officer of JD Sports, stated

"We're thrilled to acquire Hibbett | City Gear, combining two of the most respected athletic retail brands in the United States, as we continue to strategically expand our global multi-brand platform," he added.

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Hibbett Sees Mutual Benefits in Acquisition

The leadership team at Hibbett, meanwhile, also expressed enthusiasm about the acquisition. 

Mike Longo, President and Chief Executive Officer of Hibbett, highlighted the benefits for both companies.

 "JD Sports is a well-respected global leader in athletic footwear and fashion that, like us, is committed to the communities and customers it serves," Longo said in a statement.

The transaction is subject to various approvals, including Hibbett stockholder approval and regulatory clearances, and is expected to close in the second half of 2024. 

Following the acquisition, Hibbett will become part of JD Sports' portfolio of brands.

READ MORE: JD Sports Faces Backlash Over 'Irresponsible' Motorcycle Ad Featuring Rider Wearing Nike Air Max 95s

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