UK retail giant JD Sports is picking up a listed American retailer in a rare example of a London-listed company poaching from US markets.
JD Sports will pay £878m for Hibbett, an Alabama-headquartered ‘fashion inspired’ retailer with stores in 36 states across the States.
JD Sports described it as an “important strategic milestone for the group”.
Chief executive Régis Schultz has ambitious expansion plans for the American market, targeting around 700 new stores over the next four years.
It already has over 200 sites in the region and also acquired rival brands in the market such as Finish Line.
The acquisition will increase North America’s share of group sales from approximately 32 per cent to approximately 40 per cent.
Like JD Sports, the brand sells a range of popular trainers such as Nike, Adidas and Reebok.
In a statement, Schutz said: “Hibbett’s footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US.
“Financially, it accelerates our growth plans within the US and is expected to be earnings accretive from year one and before potential synergies are taken into account. It will also strengthen further our key brand partner relationships in the largest sportswear market in the world.
He added: “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.”
Earlier this year the ‘king of trainers’ warned it would pocket around £100m less than what was previously thought year due to higher discounting and reduced customer spend.