Dick’s Sporting Goods acquired Foot Locker for $ 2.4 billion. Deal connects two companies retailer suffering from President Donald Trump’s duties, according to Bloomberg.
Dick’s will pay $ 24 per share for Foot Locker, reflecting an 86.5% premium compared to yesterday’s (14.5.2025) stock price before the announcement of the deal. Shareholders of the Foot Locker retail company can also choose to receive Dick’s shares instead of cash.
The transaction implies value of $ 2.4 billion in equity and $ 2.5 billion business value, the two companies said in a statement.
Foot Locker’s shares broke their profits and increased by 83% during the pre -conference negotiation today (15.5.2025). Meanwhile, Dick’s Sporting Goods fell up to 13% before the bell trading due to the company’s largest acquisition.
While both chains are largely based on the sale of sports shoes, the acquisition will bring two companies with very different business models. Foot Locker is a chain of 2,400 stores consisting mainly of smaller, shopping malls in 20 countries, while Dick’s consists of about 800 large stores in the US.
The deal will significantly change Dick’s profile, giving the company much larger exposure to retailing in shopping malls and international locations. The addition of $ 8 billion revenue, or about 60% of Dick’s sales, have the potential to increase market strength and the bargaining power of the big retailer at a time when challenges in the supply chain are high.