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The English footwear company plans to expand its U.S. presence through the deal.
JD Sports is once again shaking up the footwear industry as the English retailer plans to acquire Hibbett Sports, according to CNBC.
The addition of Hibbett adds to JD’s already-prolific portfolio as it has already acquired Shoe Palace (located on the West Coast) and DTLR (located on the East Coast).
Currently, Hibbett has over 1,110 stores in 36 states nationwide.
The deal arrives JD Sports’ U.S.-rival, Foot Locker, “warned” on 2024 profits. Additionally, JD Sports believes that the upcoming Euro soccer championships, Paris Olympics and new styles of sneakers & apparel will energize the market on both sides of the pond.
JD Sports will reportedly pay $87.50 per Hibbett share in cash, a 20% premium to the company’s last closing price. Hibbett’s shares were up 18% to $85.70 in premarket U.S. trading.
JD Sports expects to fund the deal and refinance Hibbett’s existing debt through its U.S. cash resources of $300 million and a $1 billion extension to its existing bank facilities, per CNBC.
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