JD Sports, a British sports fashion retailer, has made a $1.1 billion (€1.0 billion) bid to acquire American sports brand Hibbett as part of its plan to expand its presence in the US. The UK’s largest sportswear retailer aims to solidify its position as a global leader in the sports fashion industry through this acquisition.
Hibbett is an American sports brand that operates across North America and has been in business for over 40 years. The acquisition of Hibbett will give JD Sports access to new markets and customers, allowing it to continue its 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. Régis Schultz, CEO of JD Sports, 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.
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%. The acquisition is expected to create immediate and significant value for Hibbett stockholders, according to Hibbett chairman Anthony Crudele.
JD Sports is known for selling popular brands like Adidas and Nike and employs over 75,000 people worldwide. The deal with Hibbett represents a transformative step for JD Sports as it further solidifies its position in the industry by expanding its presence in North America and gaining access to new markets and customers through the acquisition of Hibbett.”