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Footwear retailer Foot Locker agreed to be purchased by Dick's Sporting Goods in a deal valued at around $2.4 billion.KEY TAKEAWAYS
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Foot Locker shares are soaring after the footwear retailer agreed to be purchased by Dick's Sporting Goods in a deal valued at around $2.4 billion.
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The takeover would give Dick's Sporting Goods access to overseas markets and enable it to expand its U.S. reach, the companies said.
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Foot Locker shareholders can receive either $24 in cash for each share or exchange it for 0.1168 shares of Dick's common stock.
Foot Locker (FL) shares are soaring after the footwear retailer agreed to be purchased by Dick's Sporting Goods (DKS) in a multibillion-dollar deal.
Shares of Foot Locker were recently up about 80%, while Dick's stock was down roughly 15% in morning trading.
Foot Locker shareholders can receive either $24 in cash for for each of their shares or exchange them for 0.1168 shares of Dick's common stock, according to the terms of the deal. The transaction, expected to close in the second half of 2025, implies an equity value of around $2.4 billion for Foot Locker and an enterprise value of approximately $2.5 billion.
"By combining with Foot Locker, Dick's will be poised to serve consumers not only in new locations in the U.S. through Foot Locker's complementary real estate portfolio, but also internationally for the first time," the companies said.
Foot Locker has approximately 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand, and licensed stores in Europe, the Middle East and Asia.
The news confirms a Wednesday report from The Wall Street Journal that said the two were in talks. A deal at the $24 per-share price would top Wall Street's average price target of below $19, according to Visible Alpha data.
Foot Locker shares closed at $12.87 on Wednesday. Dick's closed at $209.61.
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