Dick’s Sporting Goods Set to Acquire Foot Locker in $2.4B Deal
The Foot Locker deal fuels Dick’s footwear-first ambitions
Dick’s Sporting Goods has entered an agreement to acquire Foot Locker Inc. for $2.4 billion in a move that consolidates two of the biggest names in athletic retail and aligns with Dick’s strategy to double down on footwear, which Dick’s president and CEO Lauren Hobart recently described as “the engine that pulls the train.”
The deal is expected to close in the second half of the year.
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve,” Dick’s executive chairman Ed Stack said. “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.”
Foot Locker operates approximately 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand.
It’s the second major shakeup in athletic retail in as many weeks, following Skechers’ $9 billion take-private deal with investment firm 3G Capital.
During its fourth-quarter 2024 earnings call, Dick’s Sporting Goods execs said the retailer delivered record sales of $13.4 billion for the year and noted “tremendous strength and momentum in the U.S. sports industry.” Foot Locker, meanwhile, previously announced plans to close 400 stores by 2026.
“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,” Foot Locker CEO Mary Dillon said. “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. I am proud of all that our teams around the world, including our Stripers, have accomplished to reach this milestone moment, and am confident this transaction represents the best path for our shareholders and other stakeholders.”