PITTSBURGH AND NEW YORK CITY — DICK’S Sporting Goods Inc. (NYSE: DKS) has entered into a definitive merger agreement with footwear and apparel retailer Foot Locker Inc. (NYSE: FL). Under the agreement, sporting goods retailer DICK’S will acquire Foot Locker for an equity value of roughly $2.4 billion and an enterprise value of $2.5 billion.
Foot Locker operates approximately 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand. Foot Locker’s portfolio of brands also includes Kids Foot Locker, Champs Sports, WSS and atmos.
DICK’S plans to operate Foot Locker as a standalone business unit and maintain the various Foot Locker brands. This acquisition will mark the first international expansion for the Pittsburgh-based sporting goods retailer.
Upon completion of the merger, which has been unanimously approved by the boards of directors of the two companies, Foot Locker shareholders will choose to receive either $24 in cash or 0.1168 shares of DICK’S common stock for each share of Foot Locker common stock. The $24 value represents a premium of roughly 66 percent to Foot Locker’s 60-trading day volume weighted average price.
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve,” says Ed Stack, executive chairman of DICK’S, referring to the pinstripe uniforms that Foot Locker employees wear. “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.”
Goldman Sachs is serving as financial advisor to DICK’S and has provided fully committed bridge financing for the transaction, which DICK’S plans to fund through a combination of cash and new debt. Wachtell, Lipton, Rosen & Katz is serving as DICK’S legal advisor.
Evercore is serving as financial advisor to Foot Locker, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as Foot Locker’s legal advisor.
The transaction is subject to Foot Locker shareholder approval and other customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2025.
Foot Locker announced last year plans to move its corporate headquarters from New York City to St. Petersburg, Fla. The move is anticipated to be finalized later this year.
Foot Locker’s stock price closed at $12.87 per share on Wednesday, May 14, a decrease of roughly 42 percent year-over-year.
Founded in 1948, DICK’S Sporting Goods operates more than 850 DICK’S Sporting Goods, Golf Galaxy, Public Lands and Going Going Gone! stores. The company’s stock price closed at $209.61 per share on Wednesday, relatively the same as this time last year.
— Hayden Spiess