JD Sports Fashion has successfully completed its acquisition of US sports retailer Hibbett, marking a significant move in its North American expansion strategy. This $1.1bn deal was first announced in April and has now received all necessary approvals.
- Headquartered in Birmingham, Alabama, Hibbett operates 1,169 stores across 36 states, offering a substantial footprint for JD Sports in the US market.
- In the fiscal year leading up to February 2024, Hibbett reported impressive financial figures, including net sales of $1.7bn and a profit before tax of $132m.
- The acquisition will see JD Sports’ North American revenues rise to approximately £4.7bn, enhancing its market share in the region significantly.
- CEO Régis Schultz highlighted the strategic importance of this acquisition, underscoring Hibbett’s complementary presence to JD Sports’ existing brands in the US.
JD Sports Fashion has completed its acquisition of Hibbett, a sports retailer based in Birmingham, Alabama, as part of its strategic expansion in North America. The deal, valued at $1.1bn (£878m), was first announced in April and has now been finalised following stockholder approval and the satisfaction of all conditions. This acquisition is a crucial step for JD Sports as it seeks to strengthen its presence in the largest sportswear market worldwide.
Hibbett boasts a formidable presence in the US, with 1,169 stores across 36 states as of May 2024. The acquisition provides JD Sports with significant retail coverage, effectively bolstering its portfolio. In the 53 weeks leading to February 2024, Hibbett recorded net sales of $1.7bn (£1.4bn), an EBITDA of $186m (£150m), and a profit before tax of $132m (£106m), showcasing its stable financial performance.
Post-acquisition, JD Sports expects its combined revenues in North America to reach £4.7bn on a pro-forma basis, increasing North America’s contribution to group sales from 32% to 40%. This increase reflects the anticipated growth and market consolidation resulting from integrating Hibbett’s operations.
Echoing the strategic significance of this acquisition, CEO Régis Schultz remarked on the complementary nature of Hibbett’s footprint to JD Sports’ existing community concepts, such as Shoe Palace on the West Coast and DTLR on the East Coast. He noted the expected earnings accretive impact from the first full year and anticipated cost synergies of at least $25m in the medium term.
Schultz stated, “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.”
This acquisition marks a strategic milestone for JD Sports, reinforcing its market position and growth trajectory in North America.
