JD Sports to acquire US-based Hibbett for 1.08 billion dollars

JD Sports Fashion has announced the proposed acquisition of sports-fashion brand Hibbett.

Today the group proposed to acquire 100 percent stake in Hibbett for a price of 87.50 dollars per share in cash, implying an equity value of 1,083 million dollars and an enterprise value of 1,109 million dollars.

Commenting on the development, Régis Schultz, CEO of JD Sports Fashion Plc, said: "We are delighted to announce the proposed acquisition of Hibbett. Strategically, it enhances our presence within North America. 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," added Schultz.

Headquartered in Birmingham, Alabama, Hibbett is a leading sports fashion-inspired retailer with 1,169 stores, located in 36 states across the US. Its main retail fascias are Hibbett and City Gear. The company added that Hibbett has been serving customers for more than 75 years with convenient locations, personalised customer service and access to leading brands such as Nike, Adidas and Jordan across footwear, apparel and accessories.

In the 53 weeks ended February 3, 2024, Hibbett generated net sales of 1,728.9 million dollars, EBITDA of 186 million dollars and pre-tax profit of 131.6 million dollars.

JD further said that on a pro-forma basis, the combined revenues of JD and Hibbett in North America would be approximately 4.7 billion pounds, which would increase North America's share of Group sales from approximately 32 percent to approximately 40 percent.

Hibbett is run by a management team led by president and chief executive officer, Michael E. Longo, and executive vice president of merchandising, Jared S. Briskin. Longo and Briskin will continue with the business following completion of the acquisition. Mike Longo has been with Hibbett since 2019 when Hibbett acquired City Gear where he had been CEO since 2006. Jared Briskin was appointed executive vice president of Merchandising in 2021 having originally joined the company in 1998.