Dick’s Sporting Goods is set to acquire Foot Locker, creating a new giant in the sporting goods retail industry.
The deal, worth $2.4 billion, will see Foot Locker become part of the Dick’s portfolio and continue to remain as a standalone business, keeping its brands, including Foot Locker Kids, WSS, Champs Sports, and Atmos.
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated ‘Stripers’ have built within the communities they serve,” said Ed Stack, executive chairman of Dick’s, in a statement. “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.”
Dick’s intends to finance the acquisition through a combination of cash on hand and new debt, with the deal expected to close in the second half of 2025.
Foot Locker shareholders will elect to receive either $24 in cash or 0.1168 shares of Dick’s common stock for each share of Foot Locker common stock under the terms of the agreement.
Foot Locker has had trouble maintaining operating efficiency as consumer shopping habits have shifted from traditional brick-and-mortar stores to online shopping.
The company has seen its share price drop by 41% this year and reported revenue of $7.99 billion in its most recent fiscal year. Dick’s, meanwhile, had revenue of $13.44 billion in its latest fiscal year.
Dick’s will gain international exposure once it buys Foot Locker, as the latter has 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand, and a licensed store presence in Europe, the Middle East, and Asia.
Based in Pittsburgh, Dick’s serves its customers through more than 850 Dick’s Sporting Goods, Golf Galaxy, Public Lands and Going Going Gone! stores, online, and through the Dick’s mobile application.
