British retailer JD Sports Fashion PLC has cleared the final hurdle to its $1.1 billion acquisition of Birmingham, Alabama-based sporting goods retailer Hibbett Sports, as Hibbett shareholders overwhelmingly approved the merger at a special meeting on July 19.
JD Sports Fashion announced in April that it had signed a binding agreement to acquire US sportswear company Hibbett Inc. The Manchester, England-based sportswear company said it would pay $87.50 per Hibbett share in cash. Hibbett’s shares are listed on the Nasdaq.
The acquisition was on hold until the Hart-Scott-Rodino Antitrust Act waiting period expired last month, so it did not have to be reviewed by the Federal Trade Commission (FTC) or the Department of Justice.
JD Sports expects to realize at least $25 million in annual cost synergies from the merger with Hibbett, which will continue to be led by CEO Michael Longo and EVP of Merchandising Jared Briskin. JD Sports expects the combined US business to generate £4.7 billion (€5.58bn) in sales, representing 40 percent of JD’s total sales.
