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Dicks Sporting Goods Set to Acquire Foot Locker in Strategic Expansion

Prime Highlights

  • Dick’s Sporting Goods to acquire Foot Locker in $2.4 billion deal, largest international expansion.
  • The acquisition will place Dick’s well-positioned in the international athletic footwear market with Foot Locker’s current store base.

Key Facts

  • Foot Locker stockholders will have the option to take either $24 per share of cash or 0.1168 shares of Dick’s common stock.
  • The deal is slated to close during the second half of 2025 subject to regulatory and shareholder approval.

Key Background

Dick’s Sporting Goods has finalized a deal to acquire ailing shoe chain Foot Locker for about $2.4 billion. The strategic purchase is aimed at enhancing Dick’s international sports and sneaker retailing platform, while rescuing Foot Locker from fiscal collapse. The buying price is an 86% premium on the previous close of Foot Locker shares and offers shareholders the option to receive cash or stock.

Foot Locker, which owns brands such as Kids Foot Locker, Champs Sports, WSS, and atmos, has seen declining sales over recent years. It operates more than 2,400 stores across 20 countries, generating some $8 billion of last year’s sales revenue–about one-third from outside the US. As a standalone company within the Dick’s umbrella, Foot Locker will enjoy considerable international reach and established customer base.

The agreement comes after pressure from Foot Locker CEO Mary Dillon, who joined in 2022, to transform the business by refocusing the company on big suppliers like Nike and growth drivers. For Dick’s, the agreement promises the ability to tap into city markets and a younger customer while expanding globally.

Though long-term potential is extensive, the stock market responded circumspectly. Foot Locker stock rose more than 80% on news of the agreement, while shares of Dick’s Sporting Goods slid about 14%, indicating that investors were hesitant to take a financially troubled retailer on. Nevertheless, strategists are weighing strategic benefits—such as access to global markets, additional product choice, and added customer appeal—against short-term risks.

Should it go through, the deal would reshape athletic retailing and establish Dick’s as a player in international sneaker culture. The deal is expected to close during some point in late 2025, pending necessary approvals.

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