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JD Sports Fashion will acquire American athletic fashion retailer Hibbett Inc (HIBB) in a merger announced on April 23, for $1.1 billion, as Britain’s biggest sportswear retailer looks to expand across the southeastern U.S.
The deal comes after a recent string of weak outlooks by sports apparel makers like Nike and Puma, who warned of weaker sales in the year’s first half. In March’s trading update, even the CEO of JD Sports Fashion, Régis Schultz said that “the current trading environment remains challenging due to less product innovation and elevated promotional activity”.
JD Sports, which sells brands like Nike, Adidas, and The North Face, will pay $87.50 per Hibbett share in cash, representing a premium of 20.71% to the U.S. retailer’s last close.
JD’s acquisition of Hibbett, which has about 1,169 stores across 36 U.S. states, will add to the British retailer’s presence in the U.S. where it already owns Shoe Palace, which has a big presence on the west coast, and DTLR, which is established in the east.
After the merger is completed, Hibbett will maintain its corporate headquarters in Birmingham, Alabama, and Mike Longo will continue to serve as President and Chief Executive Officer of the U.S. retailer.
For more detailed information regarding the deal, refer to the Deal Metrics page at the following link:
Deal Metrics for the acquisition of Hibbett, Inc. (HIBB) by JD Sports Fashion plc.
Editor’s Note: Baranjot Kaur contributed to this article.
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