Britain’s largest sportswear company buying Hibbett for $1.1B

BIRMINGHAM — Hibbett, an icon in Alabama sporting goods, is being purchased by a British sportswear retailer, the companies said today.

JD Sports Fashion will acquire all outstanding shares of Hibbett for $87.50 per share in cash, representing an aggregate enterprise value of approximately $1.1 billion, according to a news release.

“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,” said Hibbett President and CEO Mike Longo. “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.”

The Board of Directors of Hibbett unanimously approved the definitive merger agreement and the transaction. The transaction is expected to close in the second half of this year.

“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,” said Board Chairman Anthony Crudele. “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.”

Following the closing of the transaction, Hibbett will join the JD Sports family of athletic footwear and fashion retail brands and will cease to be a publicly traded company.

Longo will continue to serve as president and CEO and Jared Briskin will take on the role of chief operating officer of Hibbett. Hibbett will maintain its corporate headquarters in Birmingham.

JD Sports, which sells Nike, adidas, HOKA and other sports brands, said last month it expects the Euro soccer championships, Paris Olympics and new styles of trainers and track suits would spark life into the lacklustre market.

“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, Chief Executive Officer 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.”