Today, Dick’s Sporting Goods announced its plan to acquire footwear rival Foot Locker for $2.4 billion. Following the news, Foot Locker’s stock soared 80% in premarket trading, while Dick’s shares dropped 13%.
Ed Stack, Executive Chairman of DICK’S told investors; “We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve. 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.”
Mary Dillon, CEO of Foot Locker stated, “Today’s announcement marks the start of an exciting new chapter for Foot Locker and is a testament to our team’s hard work and dedication to our mission. 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. 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.”
As part of the deal, Foot Locker will retain its company name, and Dick’s will operate the shoe stores as a standalone business.
Footlocker will keep its 2,400 stores operating in 22 countries.
By CEO NA Editorial Staff
