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Sneaker haven JD Sports is out here making big boy moves as they look to give Foot Locker Inc. a run for their sports apparel money.
According to Reuters, JD Sports is looking to take out more of their competition as they’re on the verge of purchasing Hibbett Inc. for a cool $1.08 billion dollars. The move comes as the sports attire field has been taking SNKRS-size losses in, and that includes the likes of juggernauts such as Reebok, Puma and Nike. Still, JD Sports is looking to expand their empire. After buying the likes of Shoe Palace, Finish Line and DTLR, JD Sports seem to be on a mission to corner the sports attire market out on these streets.
Reuters reports:
“Being part of a larger global retailer like JD Sports gives Hibbett more resources compared to its U.S. peers, Foot Locker and Dick’s,” said Cristina Fernández, analyst with Telsey Advisory Group.
JD Sports will pay $87.50 per Hibbett share in cash, representing a premium of about 20% to the U.S. firm’s last closing price.
Hibbett’s shares were up nearly 19% at $86.17 in U.S. noon trading.
JD’s acquisition of Hibbett, which has about 1,169 stores across 36 U.S. states, will extend its breadth in the country from “coast to coast”, finance chief Dominic Platt said in an analyst call.
It already owns Shoe Palace, which has a big presence on the U.S. west coast, and DTLR, which is established in the east.
“From a competitive standpoint, (the deal) puts incremental pressure on Foot Locker as JD Sports becomes a stronger player in the US,” Fernández wrote in a note.
How will Foot Locker respond to this power play? We have no idea but as long as sneakerheads get the grails that they fiend for, we riding with whoever gives us the best chances of copping. Just sayin’.
What do y’all think of JD Sports buying Hibbett Inc.? Is less competition in this field better for consumers? Let us know in the comments section below.
JD Sports To Acquire Hibbett Inc. For $1B
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