DICK’S Sporting Goods, Inc. (DKS) entered a merger agreement on May 15, 2025, to acquire Foot Locker, Inc. (FL) in a deal valued at $2.5 billion.
Under the terms of the agreement, Foot Locker shareholders will elect to receive either $24 in cash or 0.1168 shares of Dick’s common stock for each share of Foot Locker common stock. The election is not subject to a minimum or maximum amount of cash or stock consideration.
The cash consideration of $24 represents a premium of 86.48% from the stock’s last close.
Foot Locker is a global athletic footwear and apparel retailer, operating a portfolio of brands, including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos, across more than 20 countries through retail stores, e-commerce platforms, and licensed locations.
DICK’S Sporting Goods is a leading omnichannel retailer of sporting goods, apparel, footwear, and outdoor gear, serving athletes and outdoor enthusiasts through over 850 stores and digital platforms, including brands like Golf Galaxy, Public Lands, and GameChanger.
Shares of Foot Locker surged 69.31% in after-hours trading the previous day, following a Wall Street Journal report that Dick’s Sporting Goods was nearing a deal to acquire the footwear retailer.
Dick’s plans to operate Foot Locker as a standalone business unit within its portfolio and retain the Foot Locker brand.
Dick’s plans to finance the deal, expected to close in the second half of 2025, through a combination of cash on hand and newly issued debt. Dick’s expects the transaction to be accretive to earnings per share in the first year following the close.
Evercore served as financial advisor, and Skadden, Arps, Slate, Meagher & Flom provided legal counsel to Foot Locker. Goldman Sachs acted as financial advisor, while Wachtell, Lipton, Rosen & Katz served as legal counsel to Dick’s Sporting Goods.
Dick’s Sporting Goods is paying 11.80 times EBITDA for Foot Locker.
For a more detailed overview of this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Foot Locker, Inc. (FL) by DICK’S Sporting Goods, Inc. (DKS).
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And a whole lot more.
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Editor’s Note: Baranjot Kaur contributed to this article