JD Sports Fashion Planned acquisition of US sports fashion retailer Hibbert Corporation Britain’s biggest sportswear retailer looks to expand in the southeastern United States, spending about $1.08 billion, the companies said Tuesday.
The deal comes as global sportswear retailers come under pressure due to the weak prospects of sportswear makers such as Nike and Puma.
US rival JD.com last month ft. cabinet However, it issued a warning about profits in 2024. Adidas The German sportswear giant last week raised its forecast to 2024 due to strong demand for its sneakers.
JD Sports, Sales NikeSports brands such as Adidas and HOKA said last month they hoped the European football championship, the Paris Olympics and new sports shoes and sportswear would inject life into the sluggish market.
It will pay $87.50 in cash for each Hibbett share, a premium of about 20% to the US company’s last closing price. Hibbett shares rose 18% to $85.70 in US premarket trading.
JD.com’s acquisition of Hibbett will expand its presence in the U.S. “from coast to coast,” JD.com Chief Financial Officer Dominic Platt said in a conference call with analysts. Hibbett has approximately 1,169 stores in 36 US states.
It already owns Shoe Palace, which has a huge presence on the West Coast of the US, and previously established DTLR.
JD Sports shares have fallen more than 20% so far this year but were up 6% by 0900 GMT.
JD Sports said the enlarged group’s total revenue in North America would be around £4.7bn, adding that the region’s contribution to total sales would increase to around 40% from the current 32%.
JD.com said the deal is expected to boost the British company’s revenue in the first year after the acquisition, with cost savings expected to be at least $25 million.
The company, based in Bury, Greater Manchester, said it would finance the deal and refinance from $300 million of its US cash assets, as well as a $1 billion expansion of existing bank facilities.
Tags: Sports acquire rival Hibbet billion sportswear retail deal
