The FTSE 100 index experienced a slight setback after reaching an all-time high earlier in the day. Bank economist Huw Pill’s comments hinted that an imminent interest rate cut may not be as likely as some analysts had anticipated. Despite the retreat, the index remained positive for the day, driven by a weaker pound and optimism about easing Middle East tensions.
Shares of Hibbett (HIBB) spiked 19.2% pre-market after JD Sports announced an all-cash acquisition deal at $87.50 per share. This represents a premium of 21% and 29% over its recent closing and 120-day volume-weighted average price, respectively. The acquisition, with an enterprise value of approximately $1.1 billion, reflects a significant market impact.
JD Sports, the leading British sportswear retailer, has announced the acquisition of its American counterpart, Hibbett, for a substantial $1.1 billion (£878 million). This strategic move is expected to significantly accelerate JD’s growth in the lucrative North American market. The acquisition will expand JD’s presence in the US by adding Hibbett’s extensive network of 1,169 stores across 36 states. Furthermore, the deal will bolster JD’s relationships with major suppliers like Adidas and Nike.
Hibbett, Inc. (HIBB) announced a definitive agreement to be acquired by JD Sports Fashion PLC (JDSPY) for $87.50 per share in cash, representing an aggregate enterprise value of approximately $1.1 billion. The deal, which values Hibbett at a 21% premium to its April 22, 2024, closing price, is expected to close in the second half of 2024.
JD Sports, a FTSE 100 sportswear retailer, has announced a $1 billion acquisition of Hibbett, a Birmingham, Alabama-based company with over 1,000 stores across 36 states. The deal is expected to significantly expand JD’s presence in the US market, increasing its share of sales from 32% to 40%. Hibbett’s complementary footprint in the southeastern US, a region where JD has a limited presence, will provide a strategic advantage for the rollout of JD’s fascia in the country. The acquisition is expected to enhance JD’s earnings immediately, and has been met with positive reactions from investors, driving up the company’s stock price.
JD Sports, a Bury-based sports fashion retailer, has announced a significant acquisition deal to purchase Hibbett, an Alabama-based chain of over 1,000 stores, for $1.1 billion (£878 million). This strategic move aims to bolster JD’s presence in the southeastern United States and enhance its operations in the world’s largest sportswear market, North America. Hibbett, headquartered in Birmingham, Alabama, operates 1,169 stores across 36 states, primarily under the Hibbett and City Gear brands. In 2022, the company reported a pre-tax profit of $131.6 million on sales of $1.7 billion.
British sportswear retailer JD Sports Fashion has announced a proposal to acquire American athletic-fashion retailer Hibbett Inc for approximately $1.08 billion. This move aims to expand JD Sports’ presence in the southeastern United States.
