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Global Sports Fashion Giants Join Forces in $1 Billion Deal

JD Sports makes impressive US market debut with multi-billion dollar bid for top American competitor

Global Sports Fashion Giants Join Forces in $1 Billion Deal

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 nearly $1.1 billion (€1.0 billion). The acquisition is expected to 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 of Hibbett will position JD Sports as a global leader in the sports fashion industry and is expected to create immediate, certain, and substantial value for Hibbett stockholders. Following the agreement, JD Sports’ total revenues in North America are projected to reach €5.5 billion, with US sales accounting for around 40% of the group’s turnover, up from the current 32%.

JD Sports CEO Régis Schultz described the acquisition as a transformative step for the company. He said that it will enable JD Sports to meet the dynamic demands of consumers globally and strengthen its position in the competitive sports fashion market.

Hibbett chairman Anthony Crudele stated that the transaction with JD Sports will create immediate, certain, and substantial value for Hibbett stockholders. He said that it will allow Hibbett to expand its presence in North America and take advantage of JD Sports’ expertise in sports fashion retailing.

JD Sports sells brands like Adidas and Nike and employs over 75,000 people worldwide. The pre-tax profit for 2023 was £440.9 million (€ 512.03 million). This strategic acquisition will further enable JD Sports to meet the needs of consumers globally and maintain its position as a leading player in the sports fashion industry.

In summary, British sports fashion retailer JD Sports has acquired American sports brand Hibbett for nearly $1 billion dollars in cash with an aim to expand its presence in North America and become a global leader in the industry. The acquisition is expected to generate significant revenue growth opportunities for both companies while creating value for their respective stakeholders.

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