On the other side of the deal, Hibbett is advised by Bass Berry & Sims PLC, with Solomon Partners Securities, LLC, playing a pivotal role as financial adviser. This collaboration between seasoned experts sets the stage for a seamless transaction process.
Freshfields-Led JD Sports Agrees To Buy US Rival For $1.1B: Strategic Impact on JD Sports
Régis Schultz, CEO of JD Sports, emphasized the transaction’s significance, noting that it aligns perfectly with the company’s strategic priorities to deepen its market penetration in North America. “Hibbett’s footprint is highly complementary, enhancing our presence across communities in the southeastern U.S.,” Schultz remarked.
The acquisition not only expands JD Sports’ geographic coverage but also promises substantial financial synergies. The combined entity is projected to generate around $5.8 billion in revenue in North America, marking a significant increase in the region’s contribution to total sales from 32% to 40%.
Freshfields-Led Deal’s Broader Implications
The Freshfields-led deal is set to finalize in the second half of the year, pending approval from Hibbett shareholders and regulatory clearances, including the Hart-Scott-Rodino Antitrust Improvements Act in the U.S. This strategic move is expected to bolster JD Sports’ earnings in the first full year of ownership and achieve at least $25 million in cost savings during this period.
