JD, a French businessman who leads the company, announced that the acquisition of Hibbett is highly complementary to their business. The addition of Hibbett will strengthen JD’s presence in communities across the south-eastern US where they currently have a limited presence. This acquisition will also provide a stronger platform for JD to introduce its brand in the US market.
In contrast to recent trends of American companies seeking deals on the UK stock market, JD has chosen to invest in a US company listed on the New York Stock Exchange. The deal will double the number of sportswear stores owned by JD in the US to 2,100, with Hibbett’s collection of over 1,000 stores contributing to this growth. JD’s share of US sales will also increase from 32% to 40%.
The US market for sportswear is valued at $120 billion, making it the largest and most lucrative market globally, whereas the UK market is worth $10 billion in comparison. This move by JD highlights their commitment to expanding their business beyond Europe and into new markets.