Dick’s Sporting Goods to Acquire Foot Locker and Expand Internationally

Dick’s Sporting Goods plans to acquire Foot Locker and position the combined organization to serve sports retail consumers around the world.

The two companies announced the deal in a Thursday (May 15) press release, saying the transaction implies an equity value of $2.4 billion and an enterprise value of $2.5 billion.

The transaction is expected to close in the second half, subject to Foot Locker shareholder approval, regulatory approvals and other customary closing conditions, according to the release. It was unanimously approved by the boards of the two companies.

“We believe there is meaningful opportunity for growth ahead,” Dick’s Executive Chairman Ed Stack said in the 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.”

Foot Locker CEO Mary Dillon said in the release that the combined company has “substantial upside potential.”

“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,” Dillon said.

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, according to the release.

For Dick’s, the deal will provide the company’s first opportunity to serve customers outside the U.S., per the release. Foot Locker operates retail stores in 20 countries and has licensed stores in others.

Thursday’s announcement confirmed a Wednesday report by the Wall Street Journal (WSJ) that Dick’s and Foot Locker were close to agreeing on an acquisition.

The WSJ report said that the two companies, like other retailers, have been impacted by talk of new U.S. tariffs. At the time of that report, Dick’s shares were down 8% this year, while Foot Locker’s shares were down 40%.

The two companies also announced preliminary results for the first quarter on Thursday.

Dick’s said it saw comparable sales growth of 4.5% during the quarter. The company will report first-quarter results and host a conference call on May 28.

Foot Locker said its comparable sales decreased by 2.6% in the first quarter. The company said that it plans to release full financial results for the quarter on May 29 and that it will not hold its previously scheduled earnings call due to the pending transaction with Dick’s.