JD Sports, a British sports fashion retailer, has made a $1.1 billion bid to acquire American sports brand Hibbett as part of its plan to expand its presence in the US. The UK’s largest sportswear retailer aims to solidify its position as a global leader in the sports fashion industry through this acquisition. The deal is expected to create immediate and significant value for Hibbett stockholders, according to Hibbett chairman Anthony Crudele.
JD Sports has entered into a binding agreement to fully acquire Hibbett for $87.5 (€82) per share in cash, representing a 21% premium over the US company’s Monday price. This acquisition aligns with JD Sports’ strategic growth plans and will allow the company to expand its footprint in North America, where it already operates under the Dick’s Sporting Goods banner.
The acquisition will be financed using $300 million (€280.5 million) from JD Sports’ US cash reserves and a $1 billion (€940 million) extension of its current bank facilities. The deal is expected to generate immediate revenues for JD Sports, with total revenues projected at €5.5 billion, up from the current €4 billion. The company currently employs over 75,000 people and reported a pre-tax profit of £440.9 million (€ 512.03 million) for 2023.
JD Sports CEO Régis Schultz expressed his excitement about the acquisition in a statement, highlighting the complementary footprint of Hibbett and how it aligns with the company’s strategic growth plans. He stated that this transaction represents a transformative step for JD Sports as it further solidifies its position in the industry, allowing it to continue expanding its global presence and offering an even wider range of products and services to customers worldwide.
Overall, this acquisition is expected to bring significant benefits not only to JD Sports but also to Hibbett stockholders who stand to benefit from increased revenue streams and higher profitability levels following this transaction.
In conclusion, JD Sports’ expansion plan through acquiring American sports brand Hibbett is set to create significant value for both companies involved while further cementing JD Sports’ position as a global leader in sports fashion retailing.