Hibbett to be acquired in $1.1 billion deal
Athletic-inspired fashion retailer Hibbett is being acquired by JD Sports Fashion plc.
The Alabama-based chain has entered into a deal with the U.K.-based global sportswear giant to acquire all outstanding shares of Hibbett for $87.50 per share in cash, in a transaction valued at approximately $1.1 billion. With the completion of the deal, Hibbett will cease to be a publicly traded company.
The acquisition will significantly add to to JD Sports' U.S. footprint, giving it a national presence. Hibbett operated 1,169 stores under the Hibbett, City Gear and Sports Additions banners in 36 states nationwide as of February 3, 2024.
JD Sports entered the U.S. market in 2018 with its purchase of The Finish Line. In 2021, it purchased California-based Shoe Palace and, two months later, athletic footwear and apparel streetwear retailer DTLR Villa. The company, which also has a presence in France, Spain and South Korea, had 3,313 stores worldwide as of March 2, 2024.
Following the closing of the deal Mike Longo will continue to serve as president and CEO of Hibbett, which will maintain its corporate headquarters in Birmingham, Ala. Jared Briskin will take on the role of COO 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,” said Longo. “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.”
Citing Hibbett’s "highly complementary footprint," JD Sports CEO Régis Schultz said the transaction "represents a logical next step in our strategic growth plan."
“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," he said.
The board of directors of Hibbett has unanimously approved the definitive merger agreement and the transaction. The transaction is expected to close in the second half of 2024, subject to receipt of Hibbett stockholder approval, receipt of required regulatory approvals, and the satisfaction of other customary conditions to closing. The transaction is not subject to a financing condition.
Solomon Partners Securities, LLC is serving as financial advisor to Hibbett, and Bass, Berry & Sims PLC is serving as its legal counsel.
Baird and Rothschild & Co are serving as financial advisors to JD Sports, and Freshfields Bruckhaus Deringer LLP is serving as its legal counsel.