Dick’s Sporting Goods hasn’t expanded outside the US yet, meanwhile Foot Locker operates in 20 countries while|Michael Rivera; Rowanlovescars|CC BY-SA 4.0
Dick’s Sporting Goods is acquiring rival Foot Locker in a $2.4 billion deal, pending regulatory approval. The acquisition could mark a turnaround for the footwear retailer whose stock has dropped 41% so far this year.
The move aims to expand Dick’s global reach, strengthen its hold on the Nike sneaker market, and attract a younger, urban consumer base.
Foot Locker operates in 20 countries while Dick’s hasn’t expanded outside the US yet.
However, Dick’s earned $13.44 billion in revenue last year compared to Foot Locker’s $7.99 billion.
The purchase will offer Foot Locker shareholders either $24 per share in cash or 0.1168 shares of Dick’s stock. The company will operate as a separate unit, keeping brands like Champs, atmos and Foot Locker Kids.