Birmingham-based sporting goods retailer Hibbett has officially been bought by a former rival.
“Today's announcement is a true testament to the work the Hibbett | City Gear team has built over the years and reinforces the strength of our brand, the close relationships with our vendor partners and our team of dedicated colleagues across the country,” said Mike Longo, president and CEO of Hibbett. “JD Sports is a globally respected leader in athletic footwear and fashion and, like us, is committed to the communities and customers they serve.”
“We are excited to begin a new chapter with JD Sports and believe this transaction will enable us to deliver even more effectively on our customer-focused mission for years to come.”
Anthony Crudell, Hibbett's board chairman, said the merger will be a great benefit to those who invested in the company.
“The transaction with JD Sports will deliver immediate, certain and significant value to Hibbett shareholders whilst ensuring our brands are positioned to continue serving the customers and communities that have always been at the heart of Hibbett's business,” he said.
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“The board unanimously agreed that this transaction was the best way to maximize value for Hibbett, and I am proud of what the company and our talented team have accomplished for all stakeholders.”
JD Sports chief executive Regis Schultz called the merger a “transformative step.”
“We are excited to acquire Hibbett City Gear, combining two of the most respected sports retail brands in the U.S. as we continue to strategically expand our global multi-brand platform,” Schultz said.
“Hibbett's highly complementary footprint makes this transaction a logical next step in our strategic growth plans, enabling us to further meet the dynamic demands of consumers around the world.”
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 share repurchase program until the closing of the transaction.
Austin Shipley is a staff writer for Yellow Hammer News.
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