British retailer JD Sports to buy US rival Hibbett for US$1.08 billion
JD Sports Fashion has proposed to buy American athletic-fashion retailer Hibbett for about US$1.08 billion, the companies said on Tuesday (Apr 23), as the British sportswear retailer expands across the southeastern US.
JD Sports, Britain’s largest sportswear retailer, will pay US$87.50 per Hibbett share in cash, representing a premium of about 20 per cent to the US firm’s last closing price.
The Bury, Greater Manchester-based company said it expects to fund the deal and refinance Hibbett’s existing debt through its existing US cash resources of US$300 million and a US$1 billion extension to its existing bank facilities.
The enlarged group would have combined revenues of about US$5.80 billion in North America, JD Sports said, adding that the region’s contribution to total sales would increase to about 40 per cent from the current 32 per cent. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Google, US clash over search advertising as trial winds down
Apple rallies most in 18 months on upbeat forecast, buyback
US: Wall St opens sharply higher on soft jobs data
HSBC has no plans to dispose of further businesses, chairman says
Glencore Group nears deal for Shell’s Singapore oil refinery
Chinese share of French EV market slumps after incentives curbed