Foot Locker to be acquired by Dick's Sporting Goods for $2.4 billion

Dick’s Sporting Goods is buying Foot Locker in a move that will give Dick's a global footprint for the first time and significant weight in negotiating with athletic powerhouse brands such as Nike and Adidas.

Under the terms of the agreement, which has been unanimously approved by the boards of both companies, Dick’s will use a combination of cash-on-hand and new debt to acquire Foot Locker for $2.4 billion. Foot Locker shareholders can receive either $24 in cash — a roughly 66% premium of Foot Locker’s average share price over the last 60-days — or 0.1168 shares of Dick’s stock.  

Foot Locker operates approximately 2,400 stores across 20 countries in North America, Europe, Asia, Australia and New Zealand, and has a licensed store presence in Europe, the Middle East and Asia. The company has struggled in recent years and in the midst of a turnaround effort that includes closing some 400 mall-based stores by 2026. While there has been some signs of improvement, the retailer is still feeling pressure from consumer softness and promotional activity. 

Foot Locker reported a same-store sales decline of 2.6% in preliminary first-quarter results.  DIck's reported a "strong start to the year," with comp sales growth of 4.5% in its preliminary first-quarter results.

"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.," said Dillon. 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.”