JD Sports has successfully completed the acquisition of Hibbett, a strategic move in North America.
- The $1.1 billion deal was finalised following stockholder approval and other conditions met.
- Hibbett operates 1,169 stores across 36 states, reporting significant sales figures.
- Post-acquisition, JD Sports anticipates substantial revenue growth and cost synergies.
- CEO Régis Schultz highlights the strategic benefits and future growth potential.
JD Sports has finalised its acquisition of the US sports retailer Hibbett. This acquisition, valued at $1.1 billion (£878 million), represents a significant strategic expansion within the North American market. Officially announced on 23 April, the transaction reached completion after receiving the necessary stockholder approvals on 19 July and satisfying all outstanding conditions.
Hibbett, with its headquarters located in Birmingham, Alabama, operates an extensive network of 1,169 stores across 36 states as of 4 May. In its financial reporting for the 53 weeks ending on 3 February 2024, Hibbett revealed net sales amounting to $1.7 billion (£1.4 billion), an EBITDA of $186 million (£150 million), and a profit before tax of $132 million (£106 million).
As a direct outcome of this acquisition, the combined revenues of JD Sports and Hibbett in North America are projected to approximate £4.7 billion on a pro-forma basis. This consolidation is expected to elevate North America’s share of group sales from 32% to 40%, demonstrating the substantial impact of the acquisition on JD Sports’ financial outlook.
The company projects that the acquisition will be earnings accretive from the first full year, forecasting cost synergies of at least $25 million in the medium term. Such financial gains are anticipated to bolster JD Sports’ profitability and operational efficiency.
CEO Régis Schultz commented on the accomplishment, stating that the completion of the Hibbett acquisition marks an important strategic milestone in North America. Schultz noted the strategic enhancement of JD Sports’ presence within North America and its objective of strengthening existing community concepts: Shoe Palace on the West Coast and DTLR on the East Coast. He added, “Hibbett’s footprint is highly and fully complementary.”
The acquisition of Hibbett by JD Sports is set to significantly enhance the company’s presence and profitability in North America.
