May 15 (UPI) — Dick’s Sporting goods said Thursday it plans to buy Foot Locker in a $2.4 billion deal.
The two companies issued a joint statement Thursday that said they “have entered into a definitive merger agreement under which Dick’s will acquire Foot Locker.”
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve,” said Ed Stack, Executive Chairman of DICK’S in a statement. “We believe there is meaningful opportunity for growth ahead.”
“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,” Foot Locker CEO Mary Dillon said. ” We are pleased to provide shareholders with a transaction structure that offers the choice of significant and immediate cash value or the opportunity to invest in the combined company and benefit from the substantial upside potential.”
If the deal wins regulatory approval, Dick’s Sporting Goods would have a big competitive advantage in the Nike sneaker market and greater access to international markets.
Nike’s major wholesale partners are Dick’s, Foot Locker and JD Sports. If Dick’s can combine with Foot Locker it could take most of the Nike sneaker market.
Dick’s has 850 stores in addition to its online presence, while Foot Locker has 2,400 retail stores in 20 countries.
Dick’s said it is paying for the acquisition with a combination of cash on hand and new debt.
Foot Locker shareholders can choose to get either $24 in cash or 0.1168 shares of Dick’s Sporting Goods common stock for every share of Foot Locker common stock.
Dick’s will continue to operate Foot Locker as a standalone business and also maintain Foot Locker brands.
The company said the benefits of acquiring Foot Locker include a bigger global platform, unlocking operational efficiencies, and strengthening relationships with brand partners.
The acquisition deal has been unanimously approved by the boards at both companies, but is subject to regulatory approval.
The deal is expected to close in the second half of 2025.
