JD, a French businessman who leads the company, has announced that the acquisition of Hibbett is highly complementary to their current business. The addition of Hibbett will strengthen JD’s presence in communities across the south-eastern US where they currently have a limited presence. This acquisition will also provide a stronger platform for JD to introduce its brand in the US market.
In contrast to recent trends, where American companies have been seeking deals on the UK stock market, this move by JD marks a departure from the norm. Many recent takeovers, such as GXO Logistics’ acquisition of Wincanton and International Paper’s purchase of DS Smith, have involved American companies buying British listed firms. With Hibbett being listed on the New York Stock Exchange, it is now part of JD’s acquisition strategy.
The deal will double the number of sportswear stores owned by JD in the US to 2,100, with Hibbett’s collection of over 1,000 stores contributing to this growth. This increase in share will also boost JD’s presence in the US market for sportswear. The US market for sportswear is valued at $120 billion, making it the largest and most lucrative market globally, whereas the UK market is worth $10 billion in comparison.
