Hibbett Agrees To Be Acquired By JD Sports Fashion For $87.50 Per Share In Cash, Amounting To ~$1.1B
Portfolio Pulse from Benzinga Newsdesk
Hibbett Sports, Inc. has agreed to be acquired by JD Sports Fashion for $87.50 per share in cash, totaling approximately $1.1 billion. This acquisition price represents a 21% premium over the April 22, 2024, closing price and a 29% premium over the 120-trading day volume weighted average price. The merger aims to create a global platform for athletic fashion distribution, with Hibbett's leadership, including Mike Longo and Jared Briskin, continuing in their roles. Hibbett will also maintain its headquarters in Birmingham.
April 23, 2024 | 6:19 am
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NEUTRAL IMPACT
JD Sports Fashion's acquisition of Hibbett Sports for approximately $1.1 billion aims to expand its global distribution platform for athletic fashion.
While the acquisition is strategic for JD Sports Fashion, aiming to enhance its global distribution capabilities, the immediate financial impact on JDSPY may be neutral. The significant outlay of cash could be offset by the long-term benefits of the acquisition, but short-term stock price movement will depend on investor perceptions of the deal's value and its impact on JD Sports' financial health.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 80
POSITIVE IMPACT
Hibbett Sports, Inc. is being acquired by JD Sports Fashion for $87.50 per share in cash, a significant premium over recent trading prices.
The acquisition price offers a substantial premium over Hibbett's recent trading prices, indicating a likely positive short-term impact on HIBB's stock price as the market reacts to the news. The premium suggests a valuation that exceeds current market perceptions, likely leading to an upward adjustment in HIBB's stock price as it aligns with the acquisition price.
CONFIDENCE 95
IMPORTANCE 100
RELEVANCE 100