Business
JD SPORTS PROPOSED ACQUISITION OF HIBBETT, INC.
JD SPORTS PROPOSED ACQUISITION OF HIBBETT, INC..
About this update from Jd Sports Fashion Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nFor immediate release\n \n23 April 2024\nJD SPORTS FASHION PLC\n \nPROPOSED ACQUISITION OF HIBBETT, INC.\n \nJD Sports Fashion Plc (the 'Group'), the leading global retailer of sports, fashion and outdoor brands, today announces the proposed acquisition of Hibbett, Inc. ('Hibbett').\n \nRégis Schultz, CEO of JD Sports Fashion Plc, said: \"We are delighted to announce the proposed acquisition of Hibbett. This acquisition is in line with our strategic priorities and is a very important transaction for our strategic and financial development.\nStrategically, it enhances our presence within North America and achieves our objective of strengthening our Complementary Concepts division. Hibbett's footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US.\nFinancially, it accelerates our growth plans within the US and is expected to be earnings accretive from year one and before potential synergies are taken into account. It will also strengthen further our key brand partner relationships in the largest sportswear market in the world. Hibbett has a strong and experienced management team who we look forward to working with on this transaction and beyond as we welcome Hibbett into our family of North American retail fascias.\"\n \nOn 23 April 2024, the Group entered into a binding agreement to acquire 100% of the outstanding share capital of Hibbett (the 'Transaction'), a company listed on the Nasdaq, for a price of $87.50 per share in cash, implying an equity value of $1,083 million1 (£878 million2) and an enterprise value of $1,109 million3 (£899 million2). The Group expects to fund the total consideration payable, and refinance Hibbett's existing debt, through a combination of existing US cash resources of $300 million and a $1,000 million extension to the Group's existing bank facilities.\nHeadquartered in Birmingham, Alabama, Hibbett is a leading sports fashion-i...