JD Sports has announced its agreement to acquire US sportswear brand Hibbett for £899 million, aiming to accelerate its expansion in the United States. The move is expected to bolster JD Sports’ growth plans in North America, enhance its Complementary Concepts division, and strengthen its relationships with brand partners. Additionally, it will expand the company’s platform to support the ongoing rollout of JD Sports in the US.
To finance the deal and refinance Hibbett’s existing debt, JD Sports plans to utilize its US cash reserves of $300 million and a $1 billion extension to its current bank facilities. Upon completion, the combined group is projected to generate approximately £4.7 billion in revenues in North America, with the region’s contribution to total sales rising to about 40 percent from the current 32 percent.
“In line with our strategic priorities”
The acquisition is anticipated to contribute positively to JD’s earnings in the first full year of ownership, with expected cost savings of at least $25 million. The deal is slated to be finalized in the latter half of 2024. Hibbett, headquartered in Birmingham, Alabama, operates 1,169 stores across 36 US states. Michael Longo, the company’s president and CEO, along with Executive Vice President of merchandising Jared Briskin, will continue in their roles post-acquisition.
JD Sports CEO Régis Schultz expressed enthusiasm about the acquisition, stating: “This acquisition is in line with our strategic priorities and is a very important transaction for our strategic and financial development.” Schultz highlighted the deal’s strategic benefits, emphasizing Hibbett’s complementary footprint in the southeastern US, where JD Sports has a limited presence. He also underscored the financial advantages, citing the deal’s expected earnings accretion from year one and its potential for synergies. Schultz also expressed confidence in Hibbett’s management team and looked forward to collaborating with them as JD Sports integrates Hibbett into its family of North American retail brands.
