JD Sports Fashion completed the acquisition of Alabama-based sports fashion retailer Hibbett, Inc. on July 25, after Hibbett shareholders approved the deal at a special meeting on July 19 and all other outstanding conditions were met.
“The completion of our acquisition of Hibbett is an important strategic milestone for us in North America and we look forward to working with its experienced management team to deliver on our growth plans in the largest sportswear market in the world,” commented Régis Schultz, CEO of JD Sports Fashion Plc. “Strategically, this acquisition enhances our presence within North America and achieves our objective of strengthening our existing community concepts: Shoe Palace on the West Coast and DTLR on the East Coast. Hibbett’s footprint is highly and fully complementary”.
Schultz also sees Hibbett as an enhanced platform for the nationwide growth of the JD brand in North America under the management of shopping centers with an efficient supply chain and a strong back office. The acquisition is expected to be accretive to earnings in the first full year following the acquisition, with cost synergies of at least $25 million in the medium term.
Hibbett’s main retail brands are Hibbett and City Gear. Hibbett has served its customers for over 75 years with leading brands such as Nike, Adidas and Jordan across footwear, apparel and accessories. For the 53 weeks ended Feb. 3, 2024, Hibbett reported net sales of $1,729 million, Ebitda of $186 million and profit before tax of $132 million.
