Two major sports equipment retailers in NJ merge to boost their reach

👟 Two major sports equipment companies are merging

👟 The acquisition will cost $2.4 billion

👟 The deal will help the companies expand worldwide and internationally

There’s a sporting goods store merger in the works.

Foot Locker and Dick’s Sporting Goods have announced they have entered into a definitive merger agreement under which Dick’s will acquire Foot Locker for $2.4 billion.

Under the terms of the merger agreement, Foot Locker shareholders can choose to either $24 in cash, 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.

“We believe there is meaningful opportunity for growth ahead. 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 organizations to better serve the broad and evolving needs of global sports retail consumers,” said Executive Chairman of Dick’s, Ed Stack.

Dick’s said it expects to 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 look forward to welcoming Foot Locker’s talented team and building upon their expertise and passion for their business, which we intend to honor and amplify together,” Dick’s President and CEO, Lauren Hobart.

With this acquisition, the company can create a new global platform that serves evolving needs that will appeal to customers, she added.

Foot Locker is excited to get on board. “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,” said Mary Dillon, CEO of Foot Locker.

In the announcement on Thursday, Dick’s said the transaction will help the Pittsburgh-based sporting goods store to serve consumers worldwide and expand its market opportunity, and, internationally for the first time.

It will maintain the Foot Locker name and run the stores as a standalone business.
The transaction is subject to Foot Locker shareholder approval, and is expected to close in the second half of this year.

Dick’s currently operates 850 stores across 47 states including 19 in New Jersey. There are also 723 Foot Locker stores in the U.S., including 32 in the Garden State.

Report a correction 👈 | 👉 Contact our newsroom