JD Sports Fashion has announced plans to acquire American athletic fashion retailer Hibbett Inc for around $1.08 billion. This move comes as the UK’s largest sportswear retailer aims to expand its presence in the southeastern United States. The deal is a strategic one, as shares in athletic clothing retailers have come under pressure globally due to weak outlooks from major sports apparel makers like Nike and Puma.
Last month, JD’s U.S. rival Foot Locker issued a warning on profits for 2024. However, there was positive news from Adidas, which raised its 2024 forecast due to strong demand for its sneakers. JD Sports, known for selling popular sports brands like Nike, Adidas, and HOKA, is optimistic about the market picking up momentum with events like the Euro soccer championships, Paris Olympics, and the introduction of new styles of trainers and track suits.
JD Sports will pay $87.50 per Hibbett share in cash, offering a premium of about 20% to Hibbett’s last closing price. Hibbett’s shares jumped 18% to $85.70 in premarket U.S. trading following the announcement. With Hibbett operating about 1,169 stores across 36 U.S. states, JD Sports believes the acquisition will significantly expand its geographic presence in the country.
JD Sports is based in Bury, Greater Manchester and plans to fund the deal by refinancing Hibbett’s current debt using its U