Dick’s Sporting Goods Buying Foot Locker

Dick’s Sporting Goods Inc. (Pittsburgh) is acquiring Foot Locker (New York) for about $2.5 billion. Dick’s said it expects to operate Foot Locker as a standalone business unit and maintain its brands.

In a joint statement, the retailers said the merger will create synergies in such areas as innovative store concepts and digital experiences that will propel the growth of both brands.

Said Ed Stack, Executive Chairman of Dick’s, “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.”

Foot Locker CEO Mary Dillon said, “by joining forces with Dick’s, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners and enhance our position in the industry.”

In its coverage of the news, CNBC noted that Foot Locker has undertaken an ambitious turnaround, and while there have been signs of improvement, larger market conditions like tariffs and consumer softness have weighed on the company’s stock, making it a potential takeover target. As of its May 14 close, which happened before the deal was announced, Foot Locker shares were down 41% this year, the news service reported.

Under terms of the deal, Foot Locker shareholders can elect to receive either $24 in cash per share or 0.1168 shares of Dick’s stock for each share of Foot Locker stock. That offering price represents a premium of about 66% to Foot Locker’s 60-trading day volume weighted average price.

Dick’s said intends to finance the acquisition through a combination of cash-on-hand and new debt. The transaction is also subject to Foot Locker shareholder approval and other customary closing conditions, including regulatory approvals. It is expected to close in the second half of 2025.

Dick’s Sporting Goods operates more than 850 stores under its flagship brand, along with Golf Galaxy, Public Lands and Going Going Gone! Stores in the U.S. Dick’s also owns and operates DICK’S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile platform. It had just under $13 billion in revenues for its 2024 fiscal year.

Foot Locker, meantime, operates stores under its flagship brand, along with the Kids Foot Locker, Champs Sports, WSS and atmos. It has about 2400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand, and a licensed store presence in Europe, the Middle East and Asia. It had net sales totaling $8 billion in 2024.