Birmingham-based sporting goods retailer Hibbett Inc. has officially been acquired by a former rival
“Today’s announcement is a true testament to all that our Hibbett | City Gear teams have built over the years and reinforces the strength of our brands, our close relationships with our vendor partners, and our team of dedicated colleagues across the country,” Mike Longo, President and Chief Executive Officer of Hibbett. “JD Sports is a well-respected global leader in athletic footwear and fashion that, like us, is committed to the communities and customers it serves.”
“We are thrilled to begin this new chapter with JD Sports, and believe the transaction will enable us to fulfill our customer-oriented mission even more effectively for years to come.”
Chairman of the Board of Directors of Hibbett, Anthony Crudele, said the merger will be of great benefit to those who have invested in the company.
“The transaction with JD Sports will create immediate, certain and substantial value for Hibbett stockholders while ensuring that our brands are well-positioned to continue to serve the customers and communities that have always been the central focus of Hibbett’s business,” he said.
RELATED: Austal rejects takeover offer from South Korean company
“The Board unanimously agreed that this transaction is the best path to maximize the value of Hibbett, and I am proud of what this company and our outstanding team have accomplished for all stakeholders.”
Régis Schultz, Chief Executive Officer of JD Sports, called the merger a “transformative step.”
“We’re thrilled to acquire Hibbett | City Gear, combining two of the most respected athletic retail brands in the United States, as we continue to strategically expand our global multi-brand platform,” said Schultz.
“With Hibbett’s highly complementary footprint, this transaction represents a logical next step in our strategic growth plans, further enabling us to meet the dynamic demands of consumers globally.”
Under the terms of the definitive merger agreement, Hibbett has agreed to suspend the payment of dividends on its common stock and the purchase of shares under its existing Stock Repurchase Program, through the closing of the transaction.
Austen Shipley is a staff writer for Yellowhammer News.
