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Investing.com -- DICK’S Sporting Goods announced Thursday that it has agreed to acquire Foot Locker (NYSE:FL) in a deal valuing the footwear and apparel retailer at approximately $2.4 billion. 

Under the terms, Foot Locker shareholders can choose either $24.00 in cash or 0.1168 shares of DICK’S stock per share. The transaction is expected to close in the second half of 2025.

The acquisition marks a strategic shift for DICK’S, which will operate Foot Locker as a standalone business unit. 

The combined company aims to create a global platform across sports retail, with a broader consumer reach and enhanced omnichannel capabilities. 

“By applying our operational expertise to this iconic business, we see a clear path to further unlocking growth,” said Ed Stack, Executive Chairman of DICK’S.

Foot Locker, which generated $8 billion in sales in 2024, has a 2,400-store footprint across 20 countries.

DICK’S CEO Lauren Hobart noted the deal would “create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences.”

Stifel analysts said in a note to clients that they view the deal as an “opportunistic expansion,” citing Foot Locker’s recent challenges and valuation.

“We view the acquisition as an opportunistic expansion given Foot Locker’s struggles and discount valuation, and not a reactionary defensive response to potential tariff pressures,” wrote the firm. 

Meanwhile, Jefferies said the $24 offer price, representing an 87% premium to Foot Locker’s last close, is “potentially positive.”

DICK’S expects the acquisition to be accretive to earnings in the first full fiscal year post-close, excluding one-time costs. The company also anticipates $100–$125 million in cost synergies through procurement and sourcing efficiencies.

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