JD Sports Fashion is buying Hibbett in a deal that values the American retailer at $1.08B, “doubling down on its push into the U.S.,” according to Elena Vardon of the WALL STREET JOURNAL. The U.K. company said that its acquisition of Birmingham, Ala.-based Hibbett “accelerates its growth plans in the U.S.” With the Hibbett deal, JD Sports “steps up its bet on the U.S.” at a time retailers are “contending with subdued demand and intense promotional activity.” JD said that once the deal is completed, the combined revenue of JD Sports and Hibbett in North America would “amount to around” $5.8B and “make up about 40% of the group’s sales, up from 32% now.” Vardon writes this would “still leave it far behind retailers such as Dick’s Sporting Goods and Foot Locker.” Vardon notes Hibbett -- which also operates the City Gear brand -- has 1,169 stores in 36 states across the U.S., while JD Sports had 969 stores in North America at the end of July (WALL STREET JOURNAL, 4/23). BLOOMBERG NEWS’ Jamie Nimmo reports Hibbett CEO Mike Longo will “continue in his role after the deal closes.” JD Sports said that the purchase “will be funded” using $300M of cash and a $1B extension to existing bank facilities (BLOOMBERG NEWS, 4/23).
