Hibbett, Inc. announced a definitive agreement in which JD Sports Fashion plc will acquire all outstanding shares of Hibbett for $87.50 per share in cash, representing an aggregate value of approximately $1.1 billion.
Mike Longo, president and CEO of Hibbett, said, “Today’s announcement is a true testament to all that our Hibbett | City Gear teams have built over the years and reinforces the strength of our brands, our close relationships with our vendor partners, and our team of dedicated colleagues across the country. JD Sports is a well-respected global leader in athletic footwear and fashion that, like us, is committed to the communities and customers it serves. We are thrilled to begin this new chapter with JD Sports, and believe the transaction will enable us to fulfill our customer-oriented mission even more effectively for years to come.”
Anthony Crudele, chairman of the Board of Directors of Hibbett, said, “The transaction with JD Sports will create immediate, certain and substantial value for Hibbett stockholders while ensuring that our brands are well-positioned to continue to serve the customers and communities that have always been the central focus of Hibbett’s business. The Board unanimously agreed that this transaction is the best path to maximize the value of Hibbett, and I am proud of what this company and our outstanding team have accomplished for all stakeholders.”
“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,” said Régis Schultz, CEO of JD Sports. “We’re thrilled to acquire Hibbett | City Gear, combining two of the most respected athletic retail brands in the United States, as we continue to strategically expand our global multi-brand platform. 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.”
Additional Transaction Details
The Board of Directors of Hibbett unanimously approved the merger agreement and the transaction. The transaction is expected to close in the second half of 2024, subject to receipt of Hibbett stockholder approval, required regulatory approvals, and other customary conditions to closing.
The transaction is not subject to a financing condition.
Under the terms of the merger agreement, Hibbett agreed to suspend the payment of dividends on its common stock and the purchase of shares under its existing Stock Repurchase Program through the transaction’s closing. Following the close, Hibbett will join the JD Sports family of athletic footwear and fashion retail brands and will cease to be a publicly traded company.
Mike Longo will continue as president and CEO and Jared Briskin will assume the role of Chief Operating Officer of Hibbett. Hibbett will maintain its corporate headquarters in Birmingham, AL.
Solomon Partners Securities, LLC is financial advisor to Hibbett, and Bass, Berry & Sims PLC is its legal counsel. Baird and Rothschild & Co. are the financial advisors to JD Sports, and Freshfields Bruckhaus Deringer LLP is its legal counsel.
Hibbett operates 1,169 Hibbett, City Gear and Sports Additions specialty retail stores located in 36 states nationwide as of February 3. Founded in 1981, the JD Group is a global omnichannel retailer of sports fashion brands.
Image courtesy Hibbett Sports
