British sports fashion retailer JD Sports has put in a billion-dollar bid to buy American sports brand Hibbett, as the UK's largest sportswear retailer aims to expand its presence within the US.
ADVERTISEMENTJD Sports says it has entered a binding agreement to fully acquire Hibbett for $87.5 (€82) per share in cash, offering a 21% premium over the US company's Monday price and valuing it at just under $1.1 billion (€1.0 billion).
"Today is a significant milestone for JD Sports as we take this transformative step as a global leader in the sports fashion industry through this transaction with Hibbett," JD Sports' chief executive officer Régis Schultz said in a statement.
"With Hibbett's highly complementary footprint, this transaction represents a logical next step in our strategic growth plans, further enabling us to meet the dynamic demands of consumers globally."
The company plans to finance the deal and refinance Hibbett's existing debt using $300 million (€280.5 million) from its US cash reserves and a $1 billion (€940 million) extension of its current bank facilities, as reported by Forbes.
"The transaction with JD Sports will create immediate, certain and substantial value for Hibbett stockholders," Hibbett chairman Anthony Crudele said in a statement.
The British brand stated that, after the agreement, its total revenues in North America would reach €5.5 billion, with US sales making up approximately 40% of the group's turnover, an increase from the current 32%, as reported by news agency Reuters.
JD which sells, Adidas, Nike and other major sports brands, employs more than 75,000 people. It reported a pre-tax profit of £440.9 million (€ 512.03 million) for 2023.
