American sports brand Hibbett has been acquired by British sports fashion retailer JD Sports for $87.5 (€82) per share in cash, valuing the company at just under $1.1 billion (€1.0 billion). The UK’s largest sportswear retailer aims to expand its presence in the US through this acquisition and solidify its position as a global leader in the sports fashion industry.
JD Sports’ CEO Régis Schultz expressed the significance of this transaction in a statement, highlighting the complementary footprint of Hibbett and how it aligns with the company’s strategic growth plans. The deal 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 acquisition is expected to create immediate and significant value for Hibbett stockholders, according to Hibbett chairman Anthony Crudele.
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%. 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. This acquisition represents a transformative step for JD Sports as it further solidifies its position in the industry and expands into new markets
