JD Sports reversed the trend of UK companies falling prey to American buyers by striking a $1.1bn (£900m) deal to acquire a US sportswear chain.
The trainers group has swooped for Alabama-based chain Hibbetts, which stocks basketball shoes and other sneakers by brands like Nike and Adidas.
The deal accelerates JD’s rapid push into the US market and represents the largest takeover ever for the retailer, which was founded in 1981 in Bury, Manchester.
JD will pay $87.50 per share, a 20pc premium to Hibbet’s share price. JD shares rose 6pc to 124p but they remain bruised after a January profit warning took them from the 170p level.
Regis Schultz, the French businessman who leads JD, said: “Hibbett’s footprint is highly complementary, adding a stronger presence in communities across the south-eastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US.”
JD’s US swoop bucks the trend for American suitors flocking to the UK stock market for deals. A number of takeovers this year, including GXO Logistics’ takeover of Wincanton, International Paper’s purchase of DS Smith and Spirent’s acquisition by Keysight, have involved Americans buying British listed firms.
Hibbett is listed on the New York Stock Exchange.
The deal will double the number of US sportswear stores owned by JD to 2,100, with Hibbett’s collection of more than 1000 stores boosting the figure. JD’s proportion of US sales will also rise from 32pc to 40pc.
America is the world’s largest and most lucrative market for sportswear, valued at $120bn. The UK is worth $10bn in comparison.
Hibbett’s outlets are mainly seen inside America’s shopping centres, and it has a strong presence in small and medium sized cities across the US South.
Mike Longo, the Hibbett chief executive, said the deal was a “true testament” to Hibbett’s staff who had helped build the business.
He praised JD Sports for being “committed to the communities and customers it serves”.
Mr Longo and his team are staying on after the deal completes to continue running the group.
Hibbett customers have an average age of 24, which is similar to the average JD customer profile, and the two companies stock similar brands such as Nike and Adidas.
JD has got a $1bn extension to its bank loan to pay for the deal.
The UK chain has been expanding rapidly overseas recently and earlier this month opened a global flagship store on the Champs-Élysées in Paris.
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