The sportwear retailer said the move will accelerate its growth plans in North America, strengthen its ‘Complementary Concepts’ division and brand partner relationships, and increase the size of its platform to support the continued rollout of JD Sports in the US.
The business said it expects to fund the deal and refinance Hibbett’s existing debt through its US cash resources of $300m and a $1bn extension to its existing bank facilities.
The enlarged group would have combined revenues of about £4.7bn in North America, JD Sports said, adding that the region’s contribution to total sales would increase to about 40% from the current 32%.
The deal is expected to add to JD’s profits in the first full year of ownership, with cost savings expected to be at least $25m. The deal is expected to complete in the second half of 2024.
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Headquartered in Birmingham, Alabama, Hibbett operates 1,169 stores across 36 states in the US.
The company is led by president and CEO Michael Longo, along with executive vice president of merchandising Jared Briskin, both of whom will continue in their roles.
JD Sports chief executive Régis Schultz said: “This acquisition is in line with our strategic priorities and is a very important transaction for our strategic and financial development.
“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.
“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.”
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