Hibbett, Inc. (NASDAQ: HIBB) shares are currently experiencing a notable surge of 18.98%, trading at $86.25 at last check. This positive momentum in the present market climate stems directly from an impending acquisition bid, signaling a transition to private ownership.
Hibbett (HIBB) has formally disclosed an agreement today, whereby JD Sports Fashion plc will acquire all outstanding shares of Hibbett at $87.50 per share in cash, marking a collective enterprise value of around $1.1 billion.
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This announcement serves as a validation of the cumulative efforts of the Hibbett | City Gear teams throughout the years, emphasizing the robustness of its brands, strong affiliations with vendor partners, and the committed workforce nationwide.
The forthcoming transaction is poised to empower Hibbett in its customer-centric endeavors for the foreseeable future. Collaborating with JD Sports will promptly generate substantial and assured value for Hibbett shareholders, while ensuring the continued provision of services to the loyal customer base and communities, which have always been paramount to Hibbett’s operations.
Hibbett’s Board of Directors has unanimously sanctioned the definitive merger agreement and associated transaction. Deal conclusion is expected in the second half of 2024, pending approval from regulators, approval from Hibbett shareholders, and satisfaction of normal closing conditions. Notably, this purchase does not require financing.
Hibbett has consented to stop paying dividends on its common shares until the deal is finished and to stop repurchasing shares under its current share repurchase program, as per the terms specified in the final merger agreement. Hibbett will become a part of the JD Sports family of retail fashion and athletic footwear companies instead of being a publicly listed company.
The company will be managed by Mike Longo as president and chief executive officer and Jared Briskin as chief operating officer following the close of the deal. Hibbett will continue to be based in Birmingham, Alabama, as its corporate office.
