Dick’s Sporting Goods to Buy Foot Locker for $2.4 Billion
GoLocalProv Business Team
Dick’s Sporting Goods to Buy Foot Locker for $2.4 Billion
Dick’s will pay $24 a share for Foot Locker, which implies an equity value of $2.4 billion and an enterprise value of $2.5 billion, the two companies said in a statement.
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Shares in Foot Locker extended gains to surge as much as 76% in premarket trading on Thursday. Meanwhile, Dick’s Sporting fell as much as 13% in trading before the bell.
The companies said in a statement on Thursday morning, “Foot Locker has a strong history of sneaker expertise that sparks discovery and ignites the power of sneaker culture through its portfolio of brands, including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos.”
Foot Locker encompasses approximately 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand, and a licensed store presence in Europe, the Middle East and Asia. In 2024, Foot Locker achieved net worldwide sales of $8 billion. Dick’s is expects to operate Foot Locker as a standalone business unit within its portfolio and maintain the Foot Locker brands.
"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. "We believe there is meaningful opportunity for growth ahead. By applying our operational expertise to this iconic business, we see a clear path to further unlocking growth and enhancing Foot Locker's position in the industry. Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers."
"We look forward to welcoming Foot Locker's talented team and building upon their expertise and passion for their business, which we intend to honor and amplify together," said Lauren Hobart, President and CEO of Dick’s. "Sports and sports culture continue to be incredibly powerful, and with this acquisition, we'll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases."