Hibbett, Inc. (HIBB) shares surged by 18% in premarket trading on Tuesday following the announcement of a definitive agreement with JD Sports Fashion PLC (JDSPY). JD Sports will acquire Hibbett for $87.50 per share in cash, representing an aggregate enterprise value of approximately $1.1 billion.
The per-share price represents a 21% premium to the April 22, 2024, closing price. The acquisition also represents a 29% premium to the 120-trading day volume weighted average price of Hibbett.
Under the terms of the merger agreement, Hibbett will suspend dividend payments and share repurchases under its existing Stock Repurchase Program until the transaction closes. JD Sports CEO Régis Schultz expressed excitement about acquiring Hibbett, stating that it combines two of the most respected athletic retail brands in the United States.
Mike Longo will continue as President and CEO of Hibbett following the closing, with Jared Briskin taking on the role of Chief Operating Officer. Hibbett will maintain its corporate headquarters in Birmingham, Alabama.
The transaction is expected to close in the second half of 2024.
