Pittsburgh-based DICK’S Sporting Goods, a full-line omni-channel sporting goods retailer, and New York-based Foot Locker, a footwear and apparel retailer, recently announced plans to merge. The merger will have an equity value of approximately $2.4 billion and an enterprise value of approximately $2.5 billion.
Under the terms of the agreement, DICK’S will acquire Foot Locker. Foot Locker shareholders will receive either $24.00 in cash or 0.1168 shares of DICK’S common stock for each share of Foot Locker common stock.
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve,” Ed Stack, DICK’S executive chairman, said. “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. Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers.”
The merger is expected to complete during the second half of the year.
DICK’S Sporting Goods operates more than 850 DICK’S Sporting Goods, Golf Galaxy, Public Lands and Going Going Gone! stores.
Foot Locker operates approximately 2,400 retail stores in 20 countries.