British Retail Giant JD Sports Acquires American Sports Brand Hibbett for $1 Billion in Cash, Securing Its Position as a Global Leader in the Sports Fashion Industry.

British sportswear retailer JD Sports has made a billion-dollar 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.

JD Sports has entered 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 and valuing it at just under $1.1 billion (€1.0 billion). This transaction aligns with JD Sports’ strategic growth plans and will create immediate and significant value for Hibbett stockholders, according to Hibbett chairman Anthony Crudele.

The deal is 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. JD Sports, known for selling popular brands like Adidas and Nike, employs over 75,000 people and reported a pre-tax profit of £440.9 million (€ 512.03 million) for 2023.

Following the acquisition, JD Sports’ total revenues in North America are projected to reach €5.5 billion, with US sales contributing approximately 40% of the group’s turnover, up from the current 32%. This represents a transformative step for JD Sports as it further solidifies its position in the industry and expands its presence in the US market.