JD Sports has announced that it is set to acquire US firm, Hibbett, for £899m.

The deal will see the British firm acquire 100% of the outstanding share capital of Hibbett, which is listed on the Nasdaq, for a price of $87.50 (£70.85) per share.

Hibbett, which is headquartered in Birmingham, Alabama, is a sports fashion-inspired retailer, boasting 1,169 stores as of 3 February 2024, located across 36 US states.

In the 53 weeks to 3 February 2024, the firm recorded net sales of $1.73bn (£1.4bn), along with $186m (£150.1m) in EBITDA and a profit before tax of £131.6m (£106.2m).

JD Sports said in a statement that the transaction represents an "important strategic milestone for the group", in a bid to accelerate its growth plans in North America and enhancing its presence in the "world’s biggest and most attractive sportswear market".

The firm added that on a proforma basis, the combined revenue of the companies in North America would be approximately £4.7bn, increasing the group’s regional sales from 32% to 40%.

Chief executive officer at JD Sports, Régis Schultz, said: "We are delighted to announce the proposed acquisition of Hibbett. This acquisition is in line with our strategic priorities and is a very important transaction for our strategic and financial development.

"It will also strengthen further our key brand partner relationships in the largest sportswear market in the world. Hibbett has a strong and experienced management team who we look forward to working with on this transaction and beyond as we welcome Hibbett into our family of North American retail fascias."

Investment director at AJ Bell, Russ Mould, added: "UK retailers haven’t always fared too well in the States but JD’s 2018 acquisition of Finish Line has proved a rare success story as the company leveraged the experience of the latter’s US management and built on this success with a further deal for Shoe Palace a few year later.

"This latest deal is for an established brand which dates back to the 1940s and has good relationships with other leading sportswear brands as well as operating from prime locations. Time will tell if this was the right use of capital over and above further returns to shareholders or buying back stock after a difficult period for the share price."

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