JD Sports’ Expansion into Southeastern U.S.
JD Sports Fashion, the largest sportswear retailer in Britain, is proposing to purchase Hibbett Inc, an American athletic-fashion retailer, for approximately $1.08 billion. This acquisition is part of JD Sports’ strategy to expand its presence across the southeastern United States.
Terms of the Deal
Under the terms of the agreement, JD Sports will acquire Hibbett for $87.50 per share in cash, representing a 20% premium to Hibbett’s last closing price. The deal is expected to be funded through JD Sports’ existing U.S. cash resources and an extension of its bank facilities.
Combined Operations
The combined group would have combined revenues of approximately 4.7 billion pounds ($5.80 billion) in North America. This acquisition would increase JD Sports’ contribution from the region to approximately 40% of total sales, up from the current 32%.
