UK-based omnichannel retailer JD Sports Fashion has completed the acquisition of US-based athletic-inspired fashion retailer Hibbett.
Effective as of 25 July 2024, the closure follows the receipt of approval from Hibbett’s stockholders on 19 July 2024 and the fulfilment of all other conditions.
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The closure follows a definitive agreement the two companies signed in April 2024. JD Sports has acquired all outstanding shares for $87.50 per share in cash.
The deal represents an aggregate enterprise value of approximately $1.1bn.
Hibbett, which has been serving customers for more than 75 years, will now operate under the JD umbrella and will no longer be a publicly traded entity.
The company’s headquarters will remain in Birmingham, Alabama.
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By GlobalDataMike Longo will continue to serve as president and CEO of Hibbett, while Jared Briskin will step into the position of chief operating officer.
The retailer, through its main retail brands Hibbett and City Gear, operates a network of 1,169 stores across 36 states as of 4 May 2024.
The retailer is known for its personalised service and offerings of leading brands such as NIKE, adidas and Jordan.
For the 53 weeks ended 3 February 2024, Hibbett reported net sales of $1.73bn, earnings before interest, taxes, depreciation and amortisation of $186m, and profit before tax of $132m.
JD Sports CEO Régis Schultz said: “The completion of our acquisition of Hibbett is an important strategic milestone for us in North America and we look forward to working with its experienced management team to deliver on our growth plans in the largest sportswear market in the world.
“Strategically, this acquisition enhances our presence within North America and achieves our objective of strengthening our existing community concepts: Shoe Palace on the West Coast and DTLR on the East Coast. Hibbett’s footprint is highly and fully complementary.”
The acquisition is expected to be earnings accretive from the first full year post-acquisition, with anticipated cost synergies of at least $25m over the medium term.
“Acquiring Hibbett will strengthen our brand relationships further as we continue to deliver a differentiated and world-class omnichannel proposition for customers,” Régis Schultz added.
