Dick’s Sporting Goods to Acquire Foot Locker for $2.4 Billion
In a significant move in the sports retail industry, Dick’s Sporting Goods has announced that it will acquire Foot Locker for $2.4 billion. The acquisition, which was announced on Thursday, is expected to help the companies expand worldwide and internationally.
According to a report from NJ1015.com, under the terms of the merger agreement, Foot Locker shareholders will have the option to receive either $24 in cash, representing a 66% premium of Foot Locker’s average share price over the last two months, or 0.1168 shares of Dick’s common stock for each share of Foot Locker common stock.
The acquisition is expected to create a new global platform that serves the evolving needs of sports retail consumers. Dick’s Sporting Goods will operate Foot Locker as a standalone business unit within its portfolio and maintain the company’s brands, including Foot Locker Kids, WSS, Champs, and atmos.
"We believe there is meaningful opportunity for growth ahead," said Ed Stack, Executive Chairman of Dick’s Sporting Goods, as quoted in the NJ1015.com report. "By applying our operational expertise to this iconic business, we see a clear path to further unlocking growth and enhancing Foot Locker’s position in the industry. Together, we will leverage the complementary strengths of both organisations to better serve the broad and evolving needs of global sports retail consumers."
Dick’s President and CEO, Lauren Hobart, also commented on the acquisition, saying, "We look forward to welcoming Foot Locker’s talented team and building upon their expertise and passion for their business, which we intend to honour and amplify together." NJ1015.com reported that Hobart added that the acquisition will help the company create a new global platform that serves evolving needs that will appeal to customers.
Foot Locker’s CEO, Mary Dillon, also expressed her enthusiasm for the acquisition, stating, "By joining forces with Dick’s, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry." NJ1015.com reported that the transaction is subject to Foot Locker shareholder approval and is expected to close in the second half of this year.
The acquisition will also help Dick’s Sporting Goods expand its market opportunity and serve consumers worldwide and internationally for the first time. The company will maintain the Foot Locker name and run the stores as a standalone business. Dick’s currently operates 850 stores across 47 states, including 19 in New Jersey, while Foot Locker has 723 stores in the U.S., including 32 in the Garden State.
As reported by NJ1015.com, the deal is expected to have a significant impact on the sports retail industry, and it will be interesting to see how the acquisition plays out in the coming months. With the acquisition, Dick’s Sporting Goods is poised to become a major player in the global sports retail market.
The deal between Dick’s Sporting Goods and Foot Locker is a significant one, and it will be worth watching to see how the two companies integrate and work together in the future. As reported by NJ1015.com, the acquisition is a major move in the sports retail industry, and it is expected to have far-reaching implications for the sector.
The source of this article is NJ1015.com, a leading news provider. All information was obtained from this source and has been verified to ensure accuracy.
