Dick's Sporting Goods Moves to Acquire Foot Locker for $2.4 Billion

Published 2 hours agoDKS

Dick's Sporting Goods Moves to Acquire Foot Locker for $2.4 Billion

Dick's Sporting Goods Inc. has announced it will acquire Foot Locker in a $2.4 billion deal. Offering $24 per share, this price represents a substantial 86% premium over Foot Locker's most recent closing price. This acquisition is part of Dick's strategic efforts to fortify its presence in the athletic retail market.

Reuters reported that Dick's aims to expand its footprint in shopping malls and international markets, enhancing its customer reach significantly. The integration of Foot Locker's customer base will allow Dick's to connect with a broader demographic, including appealing to younger consumers and sneaker aficionados. Foot Locker operates 2,400 stores in 20 countries, with reported global sales of $8 billion last year.

Foot Locker will continue as a standalone business unit within Dick's portfolio, maintaining its brands such as Champs Sports and atmos. The acquisition will be funded through a combination of cash and new debt, with plans to finalize the transaction in the latter half of 2025. This move underscores the ongoing trend of consolidation in retail as companies adjust to evolving consumer dynamics.

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