Dick's Sporting Goods has announced plans to acquire Foot Locker for approximately $2.4 billion, creating what the companies describe as a global leader in sports retail.

Under the terms of the deal, Foot Locker shareholders can choose to receive either $24.00 in cash or 0.1168 shares of Dick's common stock for each share of Foot Locker they own. The offer represents a premium of approximately 86 per cent to Foot Locker's closing price before the announcement.

"We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve," said Ed Stack, executive chairman of DICK's. "We believe there is meaningful opportunity for growth ahead."

The acquisition will give Dick's its first international presence, with Foot Locker operating approximately 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand. DICK's, based in Pittsburgh, is currently the largest sports retailer in the United States.

Lauren Hobart, president and chief executive officer of DICK's, stated: "We look forward to welcoming Foot Locker's talented team and building upon their expertise and passion for their business, which we intend to honor and amplify together."

The combined company is expected to benefit from stronger negotiating power with key suppliers such as Nike, Adidas and Puma at a time when potential tariffs threaten to raise supply chain costs for US retailers.

Mary Dillon, chief executive officer of Foot Locker, 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."

Dick's plans to operate Foot Locker as a standalone business unit within its portfolio and maintain the Foot Locker brands, which include Kids Foot Locker, Champs Sports, WSS, and atmos.

The transaction is expected to close in the second half of 2025, subject to regulatory approvals and Foot Locker shareholder approval. Dick's intends to finance the acquisition through a combination of cash on hand and new debt.

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