The athletic clothing company Hibbett is reportedly going to be acquired by JD Sports Fashion. With an enterprise value of US $ 1,109 million and an equity value of US $ 1,083 million, the group planned to purchase a 100 per cent stake in Hibbett for cash at a price of US $ 87.50 per share.
Commenting on the development, Régis Schultz, CEO of JD Sports Fashion Plc, said, “We are delighted to announce the proposed acquisition of Hibbett. Strategically, it enhances our presence within North America. 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.”
With 1,169 locations spread over 36 states in the US, Hibbett is a well-known sports fashion-inspired business with its headquarters situated in Birmingham, Alabama. City Gear and Hibbett are its primary shop facades. According to the company, Hibbett has been providing clients with convenient locations, individualised customer care, and access to top brands of footwear, apparel, and accessories, like Jordan, Adidas, and Nike, for over 75 years.
Hibbett produced net sales of US $ 1,728.9 million, EBITDA of US $ 186 million, and pre-tax profit of US $ 131.6 million in the 53 weeks that concluded on 3rd February 2024.
JD went on to state that, pro forma, JD and Hibbett’s combined revenues in North America would total around £ 4.7 billion, increasing the region’s percentage of Group sales from roughly 32 per cent to over 40 per cent.
Michael E. Longo, president and chief executive officer, and Jared S. Briskin, executive vice president of merchandising, lead the management team at Hibbett. After the acquisition is completed, Longo and Briskin will continue to run the company. Mike Longo joined Hibbett in 2019 following the company’s acquisition of City Gear, where he served as CEO since 2006. Having joined the company in 1998, Jared Briskin was named executive vice president of merchandising in 2021.
