JD Sports is going to take over American rival Hibbett

JD Sports today announced the proposed acquisition of Hibbett, Inc. announced for $1.08 billion as the company looks to expand its presence in North America.

The group will finance the deal by refinancing Hibbett’s debt through US cash of £242 million ($300 million) and an £810 million ($1 billion) expansion of existing banking facilities.

Headquartered in Birmingham, Alabama, Hibbett is a leading sportswear-inspired retailer with 1,169 stores in 36 U.S. states. For the 53 weeks ended February 3, 2024, Hibbett generated net sales of $1,728.9 million.

On a pro-forma basis, the combined revenues of JD and Hibbett in North America would be approximately £4.7 billion, which would increase the North American share of the Group’s revenue from approximately 32% to approximately 40%.

Hibbett is led by an experienced management team, led by President and Chief Executive Officer, Michael E. Longo, and Executive Vice President of Merchandising, Jared S. Briskin. Both managers will continue to run the business following the completion of the transaction.

Régis Schultz, CEO of JD Sports Fashion Plc, said: “We are pleased to announce the proposed acquisition of Hibbett. This acquisition is aligned with our strategic priorities and is a very important transaction for our strategic and financial development.

“Strategically, it expands our presence in North America and achieves our goal of strengthening our Complementary Concepts division. Hibbett’s footprint is highly complementary and adds a stronger presence in communities across the Southeastern US where we currently have a limited presence. a stronger platform for the rollout of the JD fascia in the US.

“Financially, it accelerates our growth plans in the US and is expected to deliver profits from year one, before taking into account potential synergies. It will also further strengthen our key brand partner relationships in the world’s largest sportswear market. Hibbett has a strong and experienced management team with whom we look forward to working on this transaction and beyond as we welcome Hibbett to our family of North American retail organizations.”