JD Sports to snap up US rival Hibbett
JD Sports has today announced the proposed acquisition of Hibbett, Inc. for $1.08 billion as it looks to expand its presence across North America.
The group will fund the deal by refinancing Hibbett’s debts through its US cash resources of £242 million ($300 million) and a £810 million ($1 billion) extension to its existing bank facilities.
Headquartered in Birmingham, Alabama, Hibbett is a leading sports fashion-inspired retailer with 1,169 stores across 36 states in the US. In the 53 weeks ending 3 February 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 North America's share of Group sales from approximately 32% to approximately 40%.
Hibbett is run 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 executives will continue with the business following the completion of the Transaction.
Régis Schultz, CEO of JD Sports Fashion Plc, said: "We are delighted to announce the proposed acquisition of Hibbett. This acquisition is in line with our strategic priorities and is a very important transaction for our strategic and financial development.
"Strategically, it enhances our presence within North America and achieves our objective of strengthening our Complementary Concepts division. Hibbett's footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US.
"Financially, it accelerates our growth plans within the US and is expected to be earnings accretive from year one and before potential synergies are taken into account. It will also strengthen further our key brand partner relationships in the largest sportswear market in the world. Hibbett has a strong and experienced management team who we look forward to working with on this transaction and beyond as we welcome Hibbett into our family of North American retail fascias."
