The US sporting goods chain Dick’s Sporting Goods has confirmed its intention to easily take over the shoe retailer Foot for $ 2.4 billion. The two companies have made a final merger agreement with a company value of around $ 2.5 billion.
Due to the merger of the companies, Dick’s wants to create a global platform within the sporting goods single-trade industry. In a press release, the company explained that the already extensive international network of Foot will easily get in touch with global markets and would thus expand its own presence.
With this extended range, the two companies also want to strengthen the relationship with branded partners: at the same time invest in future growth through Omnichannel experiences, which should ultimately help to position the merged company for long-term growth. Much of this will be reflected in differentiated retail concepts that build on existing ideas such as Dick’s House of Sport and Foot Lockers Reimagined Concept Stores.
For the shareholders: Inside, Dick’s said that the company expects the transaction in the first full financial year after the transaction will have an increasing impact on the profit per share. It is expected that cost synergies of $ 100 to $ 125 million will be achieved in the medium term by procuring and gathering.
Merged companies want to expand the respective presence through differentiated retail
The shareholders: Inside Foot can choose to choose whether you want to receive either 24 US dollars in cash or 0.1168 shares of the Dick’s stem shares for every foot locker stem share. Based on the closing course of the Foot Locker Shares on May 14th, this offer of around 66 percent corresponds to a premium, as was communicated in a press release.
Dick’s intends to finance the takeover, which is still subject to the consent of the shareholders: inside and other conditions, through a combination of existing cash and new debts. The transaction is expected in the second half of 2025.
In an explanation, Ed Stack, Executive Chairman of Dick’s, said that the company recognizes an “significant chance of growth” and “by using our operational know-how to this iconic company, we see a clear way to further open up growth and easily improve the position of Foot in the industry”.
With the publication of the preliminary results of Foot, the news fell loose for the first quarter, for the three months until May 3, 2025, in which the company also confirmed the takeover plans. The company, which operates around 2,400 retail locations in 20 countries, expects results that “are below our expectations because we heard a weaker worldwide: internal frequency,” said CEO Mary Dillon.
The sales-adjusted sales fell by 2.6 percent compared to the previous year, while the net loss is expected to be $ 363 million. As a result, the company gets into the loss zone after it had shown a net profit of eight million US dollars last year. Nevertheless, Dillon was optimistic and explained: “We continued to control our promotion level and maintain the inventory and output discipline, and we have taken concrete steps in order to drive these efforts and to remain agile and well positioned in an insecure macroeconomic environment.”
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