Dick’s Sporting Goods has just announced its $2.4 billion acquisition of Foot Locker, a move that aims to bolster its global sports retail presence.
The deal, valuing Foot Locker’s enterprise at $2.5 billion, offers shareholders $24 per share in cash or 0.1168 Dick’s shares—a 66% premium. Foot Locker’s stock surged 85%, while Dick’s dropped 14% after the deal was announced.
With Foot Locker’s 2,400 stores across 20 countries and $8 billion in 2024 sales, Dick’s gains a strong sneaker brand portfolio, including Champs Sports and Atmos. The merger strengthens Dick’s Nike sales, projected at $8 billion, but increases reliance on a single supplier. Dick’s plans to run Foot Locker as a separate entity, preserving its identity while targeting distinct customer bases.
Despite growth potential, analysts question the deal’s risks, citing Foot Locker’s 2.6% Q1 2025 sales decline and mall-based challenges.
Set to close by year-end, the acquisition now positions Dick’s as a global retail leader with over 3,200 stores, but acquisition success will depend on seamless integration and navigating a tough retail landscape.
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