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JD Sports has today (23 April) announced the acquisition of US sports brand Hibbett for £899m.
The deal represents an important strategic milestone for the retailer, accelerating its growth plans in North America and aligning with the group’s stated strategy of enhancing its presence in the US.
Headquartered in Alabama, Hibbett is a leading sports fashion-inspired retailer with 1,169 stores located in communities in 36 states across the US. In the 53 weeks ended 3 February 2024, Hibbett generated net sales of $1.7bn (£1.3bn), EBITDA of $186m (£150m) and profit before tax of $131.6m (£106.3m).
The combined revenues of JD and Hibbett in North America would be approximately £4.7bn, which would increase North America’s share of group sales from approximately 32% to approximately 40%.
Furthermore, the transaction will help the group to continue to strengthen brand partner relationships, allowing the group to deliver an enhanced proposition to customers.
The deal is expected to be completed in the second half of 2024.
Régis Schultz, CEO of JD Sports Fashion Plc, said: “We are delighted to announce the proposed acquisition of Hibbett. This acquisition is in line with our strategic priorities and is a very important transaction for our strategic and financial development.
“Strategically, it enhances our presence within North America and achieves our objective of strengthening our Complementary Concepts division. Hibbett’s footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US.”
Schultz continued: “Financially, it accelerates our growth plans within the US and is expected to be earnings accretive from year one and before potential synergies are taken into account. It will also strengthen further our key brand partner relationships in the largest sportswear market in the world.
“Hibbett has a strong and experienced management team who we look forward to working with on this transaction and beyond as we welcome Hibbett into our family of North American retail fascias.”
