Companies

JD Sports announces acquisition of Hibbett

Apr 26, 2024 United Kingdom

The British sports retailer has proposed to buy the US sportswear retailer Hibbett for around 1.08 billion USD. The move will allow JD Sports to expand its business in the North American country

JD Sports has entered into a binding agreement to acquire 100% of the issued share capital of Hibbett for 87.50 US dollars per share in cash, representing an equity value of 1.08 billion US dollars and an enterprise value of 1.1 billion US dollars. According to the statement, the transaction represents an important strategic milestone for the British company as it looks to accelerate its growth in North America to increase its presence in the “world’s biggest and most attractive sportswear market”.

The combination of JD Sports and Hibbett in North America (on a pro forma basis) is expected to grow sales to 4.7 billion British pounds, increasing North America’s share of group sales from approximately 32% to approximately 40%. The acquisition is also expected to strengthen JD’s Complementary Concepts division and increase the size of its platform to support the company’s continued expansion in the US.

“Strategically, it enhances our presence within North America and achieves our objective of strengthening our Complementary Concepts division. Hibbett's footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US”, addedRégis Schultz, CEO of JD Sports.

Founded in 1945 and headquartered in Birmingham, Alabama, the sports retailer Hibbett operates 1 169 stores in 36 states in the US. The company is led by president and CEO Michael Longo, along with executive vice president of merchandising Jared Briskin, both of whom will continue in their roles.

Image Credits: costar.com

United Kingdom United States Acquisitions Footwear JD Sports Retail Sportswear