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JD Sports Bids for Hibbett in $1.08 Billion Deal

April 23, 2024

JD Sports Fashion plans to buy Hibbett Inc. for around $1.08 billion. The move aims to help the UK’s largest sportswear retailer grow in the southeastern United States.

This proposal comes as the global athletic clothing market faces challenges. Brands like Nike and Puma recently gave weak outlooks, causing shares in athletic apparel retailers to drop. Foot Locker also warned about its 2024 profits. In contrast, Adidas raised its 2024 forecast due to strong sneaker demand.

JD Sports remains optimistic about the market’s future. The company expects events like the Euro soccer championships and Paris Olympics, along with new shoe and tracksuit styles, to boost sales.


According to JD Sports’ CEO Regis Schultz, the deal “strengthens the company’s footprint in the southeastern U.S., where it currently has a limited presence.” Per the Wall Street Journal, Hibbett currently operates 1,169 stores across 36 states, and as of last July, JD Sports had 969 stores in North America.

The deal values each Hibbett share at $87.50 in cash, a 20% premium over its last closing price. If the deal goes through, the combined companies would generate about 4.7 billion pounds ($5.80 billion) in North American revenues. This would increase North America’s share of JD Sports’ total sales from 32% to around 40%.

JD Sports predicts the acquisition will boost its earnings within the first year. The company also anticipates saving at least $25 million in costs.


Despite JD Sports shares dropping by over 20% this year, news of the potential acquisition led to a 3.8% rise in early trading. The company plans to finance the deal and refinance Hibbett’s debt using $300 million in U.S. cash reserves and a $1 billion extension to its bank facilities. The deal underscores JD Sports’ commitment to expanding its presence and diversifying its offerings in the competitive athletic apparel market.

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