DICK'S Sporting Goods to Acquire Foot Locker in $2.4 Billion Deal

Published 1 hours agoDKS

DICK'S Sporting Goods to Acquire Foot Locker in $2.4 Billion Deal

DICK'S Sporting Goods has announced an agreement to acquire Foot Locker for $2.4 billion, paying $24 per share. This offer represents an 86% premium over Foot Locker's most recent closing price, as reported by Reuters. The acquisition, if completed, will significantly strengthen DICK'S presence in the footwear retail market.

Foot Locker operates 2,400 stores across 20 countries, contributing $8 billion in sales last year, according to the Associated Press. Following the news of the acquisition, Foot Locker's shares rose by over 82%, while stock for DICK'S declined by more than 10%. This market reaction highlights differing investor sentiments regarding the deal's potential outcome and risks.

This acquisition is part of a strategic move by DICK'S to enhance its leverage in sneaker retail, as noted by analysts from FT. However, there is caution due to Foot Locker's declining revenues and operational challenges. The transaction is anticipated to close in the latter half of 2025, pending shareholder approval.

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