Pittsburgh-based retailer DICK’S Sporting Goods Inc. said Monday that its acquisition of Foot Locker Inc. has been completed.
“We are excited to officially welcome the Foot Locker team,” DICK’S President and CEO Lauren Hobart said. “Bringing together the strengths of both companies will help us return Foot Locker to growth while continuing to fuel DICK’S momentum.”
Combined with Foot Locker, DICK’S will now operate more than 3,200 stores plus e-commerce and digital businesses across 20 countries in North America, Europe, Asia, and Australia, plus a licensed store presence in Europe, the Middle East and Asia.
The expanded footprint will strengthen its relationships with key brand partners by offering broader reach and enhanced visibility on a global level, according to Hobart.
“We are very enthusiastic about the future of Foot Locker,” said Ed Stack, executive chairman of DICK’S. “The world class team we have assembled is committed to returning Foot Locker to its rightful place in our industry. We are committed to investing in and growing Foot Locker through its strong culture, led by the Stripers, and creating a more powerful experience for consumers.”
Stack noted that DICK’S will continue to operate Foot Locker’s portfolio of brands, including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos, under a new leadership team.
For instance, Stack will lead the global Foot Locker businesses, in partnership with two new presidents, one for North America and one for international. Ann Freeman, a longtime former Nike executive, has been appointed president of Foot Locker North America and DICK’S will appoint a president of Foot Locker International to lead other regions.
“I am thrilled to join and lead Foot Locker North America at such a transformative moment,” said Freeman. “Together, we have an extraordinary opportunity to build on Foot Locker’s rich heritage and deliver innovative experiences to a variety of footwear consumers. I look forward to working with the talented Foot Locker team as we accelerate growth, enrich our brand partnerships and inspire the next generation of consumers.”
The transaction is expected to deliver between $100 million to $125 million in cost synergies in the medium term, primarily through procurement and direct sourcing efficiencies, the company said.