French businessman Regis Schultz, who leads JD, announced that the acquisition of Hibbett is highly complementary to JD’s business. This move by JD is in contrast to the trend of American companies seeking deals on the UK stock market. Many recent takeovers have involved American companies buying British listed firms, such as GXO Logistics’ acquisition of Wincanton and International Paper’s purchase of DS Smith.
Hibbett, being listed on the New York Stock Exchange, is now part of JD’s acquisition strategy. The deal will double the number of sportswear stores owned by JD in the US to 2,100, with Hibbett’s collection of over 1,000 stores contributing to this growth. This addition will strengthen JD’s presence in communities across the south-eastern US where they currently have a limited presence. JD’s share of US sales will also increase from 32% to 40%.
The US market for sportswear is valued at $120 billion, making it the largest and most lucrative market globally, whereas the UK market is worth $10 billion in comparison. This acquisition will provide a stronger platform for JD to introduce its brand in the US market and increase its market share in this highly competitive industry.