UK Sports Retail Giant JD Sports Bids $1 Billion for US Sports Brand Hibbett in Expansion Plan

JD Sports, a British sports fashion retailer, has made a billion-dollar bid to acquire American sports brand Hibbett as part of its plan to expand its presence in the US. The UK’s largest sportswear retailer aims to solidify its position as a global leader in the sports fashion industry through this acquisition.

JD Sports has entered a binding agreement to fully acquire Hibbett for $87.5 (€82) per share in cash, representing a 21% premium over the US company’s Monday price and valuing it at just under $1.1 billion (€1.0 billion). This transaction will create immediate and significant value for Hibbett stockholders, according to Hibbett chairman Anthony Crudele.

The acquisition will be financed using $300 million (€280.5 million) from JD Sports’ US cash reserves and a $1 billion (€940 million) extension of its current bank facilities. The deal aligns with JD Sports’ strategic growth plans and strengthens its complementary footprint in North America, with projected revenues reaching €5.5 billion, up from the current €3.2 billion.

JD Sports, known for selling popular brands like Adidas and Nike, employs over 75,000 people and reported a pre-tax profit of £440.9 million (€ 512.03 million) for 2023. The deal with Hibbett represents a transformative step for JD Sports as it further solidifies its position in the industry and continues to grow its presence globally.