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British sportswear chain JD Sports is accelerating its push into the US by snapping up New York-listed rival Hibbett in a $1.1bn deal, one of its biggest acquisitions to date.
The move is part of a move to become a “global sports-fashion powerhouse” set out by chief executive Régis Schultz after he joined in 2022.
Aggressive acquisitions over the years have pushed JD Sports into more than 30 countries, including the US, where it now generates almost a third of its revenue.
The combined group would have revenues of about £4.7bn in North America, JD Sports said, adding that the region’s contribution to sales would increase to about 40 per cent.
Alabama-based Hibbett has 1,169 stores located in 36 states across the US. In the year to February, it generated net sales of $1.7bn and pre-tax profit of $131.6mn.
JD Sports, Britain’s largest sportswear retailer, will pay $87.50 per Hibbett share in cash.
The purchase, set to be completed in the second half of 2024, is the latest in JD’s transatlantic expansion.
The British sportswear chain opened its first five US stores under the JD brand in 2018 and a flagship outlet in New York’s Times Square in 2020.
Richard Chamberlain, an analyst with RBC Capital Markets, said the purchase would increase JD’s presence in the US market, but “the concern now is that JD is somewhat substituting organic growth with M&A.”
He added that JD currently only had single-digit market share in the US, meaning the deal would increase its presence and be “more wedded to Nike”.
JD, which also has a presence in Europe, Asia and Australia, is becoming an important partner to brands such as Nike and Adidas, as they try to reach customers that will not shop with them directly.
Mike Longo will continue as chief executive officer and president of Hibbett, while Jared Briskin will take on the role of chief operating officer at the US company.
