British sportswear retailer JD Sports Fashion Plc has entered into a definitive agreement to wholly acquire “highly complementary” US sports apparel and equipment retailer Hibbett, Inc. to speed up its US expansion and enhance its presence in “the world’s biggest and most attractive sportswear market”.
Under the terms of the deal, Birmingham, Alabama-based Hibbett’s outstanding shares will be sold to JD Sports for $87.50 per share in cash for an aggregate enterprise value of approximately $1.1 billion.
“Today’s (Tuesday) announcement is a true testament to all that our Hibbett | City Gear teams have built over the years and reinforces the strength of our brands, our close relationships with our vendor partners, and our team of dedicated colleagues across the country,” said Mike Longo, president and CEO of Hibbett. “JD Sports is a well-respected global leader in athletic footwear and fashion that, like us, is committed to the communities and customers it serves. We are thrilled to begin this new chapter with JD Sports , and believe the transaction will enable us to fulfill our customer-oriented mission even more effectively for years to come.”
The transaction, approved unanimously by the Hibbett board of directors, is expected to close in the second half of 2024. Once the acquisition is finalised, Hibbett will cease to be a publicly traded company.
Hibbett, whose corporate headquarters will remain in Birmingham following the close of the transaction, will join the JD Sports family of retail brands located across the globe.
“Today is a significant milestone for JD Sports as we take this transformative step as a global leader in the sports fashion industry through this transaction with Hibbett,” said Régis Schultz, CEO of JD Sports. “We’re thrilled to acquire Hibbett | City Gear, combining two of the most respected athletic retail brands in the United States , as we continue to strategically expand our global multi-brand platform. With Hibbett’s highly complementary footprint, this transaction represents a logical next step in our strategic growth plans, further enabling us to meet the dynamic demands of consumers globally.”
Hibbett Sports was founded in 1945 by Rufus Hibbett as the Dixie Supply Co. and was renamed to Hibbett & Sons seven years later. The company went public on the NASDAQ in 1996 and has more than 1,000 stores across the United States.
