Plans for an acquisition merger between DICK’S Sporting Goods and Foot Locker were recently revealed. The plans were announced on May 15, 2025. The equity value involved in the merger is stated to be around $2.4 billion. Both companies have multiple brands within their corporate auspices. The Golf Galaxy brand, for instance, is part of DICK’S Sporting Goods, Inc. Champs Sports is one of the brands within Foot Locker, Inc.
While DICK’S will acquire Foot Locker, the Foot Locker overall brand identity will still exist. Many benefits are presented for continuing to build on the components of both merging companies. Foot Locker, for instance, has stores around the world. DICK’S Sporting Goods can, via this merger, also develop a worldwide brand presence. In addition, both brands can enhance their collaborative innovations with the brands they work with.
DICK’S Sporting Goods’ Announcement
DICK’S Sporting Goods, Inc. presented an exciting new development on May 15, 2025. The corporation announced that it will acquire Foot Locker, Inc. A press release on the DICK’S Sporting Goods website provides details about the acquisition announcement. The press release states that the two companies have “entered into a definitive merger agreement.” Foot Locker is set to be acquired by DICK’S in this merger. According to the press release, the “transaction implies an equity value of approximately $2.4 billion.” In addition, the corporate transaction’s stated enterprise value is around $2.5 billion.
Corporate Finance Institute (CFI) explains equity value and enterprise value. CFI describes equity value as “the value that remains… after any debts have been paid.” CFI states that enterprise value is a company’s “total value” in assets. Cash is not included in the enterprise value. CNBC reports that DICK’S “will use a combination of cash on hand and new debt.” These financial offerings will be applied to the process of acquiring Foot Locker.
Plans to Include Foot Locker’s Strategies
The press release explains: “DICK’S expects to operate Foot Locker as a standalone business unit.” There are no plans to demolish or subsume the Foot Locker company identity. Rather, DICK’S will acquire Foot Locker, and the two businesses will work together. The goal of the merger is described as leveraging “the complementary strengths of both organizations.” The press release states the fused organization will include “iconic concepts consumers know and love.”
Potential future benefits of the decision are presented in the press release. One benefit is that acquiring Foot Locker will allow DICK’S to expand its presence overseas. Also, combining the two companies will create a versatile and imaginative company. Another benefit is that the new company can provide a global forum for brand collaboration. This merger can provide new ways to partner with brands effectively. The press release also lists “innovative store concepts and robust digital experiences” as combined projects. In addition, an expected benefit is an overall increased value for shareholders.
Overview of the Merger
The DICK’S Sporting Goods company was started in 1948. The company is based in Pittsburgh, PA. It has the stated underlying “belief that sports have the power to change lives.” DICK’s Sporting Goods exhibits this philosophy in a variety of ways. For instance, the company contributes to youth sports programs. Besides DICK’S Sporting Goods stores, other stores operate within the company’s corporate umbrella. These stores include Public Lands, Going, Going, Gone!, and Golf Galaxy.
The acquisition press release states: “Foot Locker, Inc. is a leading footwear and apparel retailer.” Foot Locker is one brand within the company’s portfolio. Other brands in the portfolio are Kids Foot Locker, atmos, WSS, and Champs Sports. The company has store locations in twenty countries. Stores can be found in New Zealand, Australia, Europe, Asia, and North America. In addition, the company has licensed commercial placement in Asia, the Middle East, and Europe. The company operates around 2,400 stores in total.
