Shareholders voted at a special meeting held Friday (Aug. 22) and approved the deal with 99% of the votes cast, representing 70% of all outstanding shares, voting in favor, Foot Locker said in a Friday press release.
The transaction remains subject to other customary closing conditions, including regulatory approval, but is expected to close in the second half of the year, according to the release.
“We are now one step closer to joining forces with Dick’s and even better positioning the business 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 in the release. “We look forward to continuing to work closely with Dick’s to complete this transaction and unlock its significant value creation potential.”
Foot Locker and Dick’s Sporting Goods announced the planned acquisition May 15, saying the transaction implied an equity value of $2.4 billion and an enterprise value of $2.5 billion.
Dick’s plans to operate Foot Locker as a standalone business unit, maintain the Foot Locker brands, and create enhanced store designs, omnichannel experiences and a product mix that appeals to all the brands’ customer bases, the firms said at the time.
Advertisement: Scroll to Continue
“We believe there is meaningful opportunity for growth ahead,” Dick’s Executive Chairman Ed Stack said in the May 15 press release. “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.”
Sen. Elizabeth Warren, D-Mass., said in an Aug. 6 press release that she wrote a letter to the Federal Trade Commission and the Department of Justice’s Antitrust Division, saying the deal could lead to higher prices for consumers and urging the regulators to block it if they find it violates antitrust laws.
The release said that if the deal goes through, Dick’s would control more than 15% of the U.S. sporting goods market.
“The size of the deal and each company’s significant presence in the athletic footwear market suggest this deal merits significant scrutiny from antitrust agencies,” Warren wrote.
