Manchester-based JD Sports has made a strategic move to acquire Hibbett, a US-based sportswear retailer, for approximately $1 billion. This deal marks a significant step in JD’s international expansion strategy, particularly in the US market.
Hibbett, headquartered in Birmingham, Alabama, operates over 1,000 stores in 36 states under its own name and the City Gear brand. The company’s strong presence in the southeastern US complements JD’s existing footprint, providing opportunities for growth and expansion in a region where JD has a limited presence.
Régis Schultz, JD’s chief executive, highlighted the strategic importance of the Hibbett acquisition. He emphasized the complementary nature of Hibbett’s footprint, which will enable JD to establish a stronger presence in communities across the southeastern US. Moreover, the acquisition will enhance JD’s ability to roll out its own fascia within the US market.
JD plans to fund the deal through a combination of existing resources and a $1 billion extension to its existing bank facilities. The company’s shares saw a significant increase of over 7% following the announcement, indicating investor confidence in the strategic move.
The acquisition of Hibbett aligns with JD’s aggressive expansion plans within the US. Under the leadership of French executive Régis Schultz, who took over as CEO in 2022, JD has embarked on a growth trajectory in the US market. Prior to this acquisition, JD had successfully acquired Finish Line in 2018 and Shoe Palace a few years later, further solidifying its presence in the US sportswear market.
Industry experts have expressed optimism about JD’s latest acquisition. Russ Mould, investment director at broker AJ Bell, noted that UK retailers have not always fared well in the US, but JD’s previous acquisitions have proven successful. He attributed this success to JD’s ability to leverage the experience of US management teams and build upon their expertise.
The acquisition of Hibbett is seen as a positive move for JD Sports, providing the company with a strong platform to accelerate its growth plans within the US, the largest sportswear market in the world.
