US omni-channel retailer Dick’s Sporting Goods has agreed to purchase rival Foot Locker in a $2.4bn deal, which will help serve consumers internationally for the first time.
The deal has an enterprise value of almost $2.5bn.
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Upon disclosure, Dick’s experienced a decline in stock value, dropping by 13% on 15 May 2025, while Foot Locker’s stock witnessed a significant increase, with shares up 83% during premarket trading.
Dick’s plans to integrate Foot Locker into its portfolio but operate it as an independent business unit and preserve the brand’s identity.
Foot Locker, which encompasses a range of brands such as its namesake, Kids Foot Locker, along with Champs Sports, WSS, and atmos, reported global net sales reaching $8bn in 2024.
The company has a network of 2,400 stores across 20 nations and regions including North America, Europe, Asia, Australia and New Zealand, and additional licensed stores in Europe, the Middle East and Asia.
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By GlobalDataDick’s Sporting Goods president and CEO Lauren Hobart stated: “We look forward to welcoming Foot Locker’s talented team and building upon their expertise and passion for their business, which we intend to honour and amplify together.
“Sports and sports culture continue to be incredibly powerful, and with this acquisition, we’ll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases.”
Dick’s reported earnings per diluted share at $14.05 for the full fiscal year 2024, a 15% increase from the $12.18 recorded in 2023.
The merger is expected to enhance Dick’s global consumer reach and increase its market potential.
Leveraging insights from both Dick’s House of Sport and Foot Locker’s Reimagined Concept stores, the new entity aims to offer consumers immersive retail experiences.
It also seeks to foster growth through unique store formats and strong digital platforms aimed at sustained profitable expansion.
Foot Locker CEO Mary Dillon stated: “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.”
Dick’s anticipates the transaction to positively impact earnings per share in the first full fiscal year following closure and foresees cost savings between $100m to $125m in the medium term due to efficiencies in procurement and direct sourcing.
The acquisition awaits approval from Foot Locker shareholders along with standard closing conditions such as regulatory consents. It is expected to close in the latter half of 2025.
Dick’s intends to use available cash and acquire new debt to finance this acquisition. Goldman Sachs is acting as the financial advisor while Wachtell, Lipton, Rosen & Katz provides legal counsel for Dick’s.
