Dick’s/Foot Locker Deal Crosses Finish Line

Dick’s Sporting Goods Inc. (Pittsburgh) has completed its acquisition of Foot Locker Inc. (New York). The combined company will operate more than 3200 stores plus e-commerce and digital businesses across 20 countries in North America, Europe, Asia and Australia, plus a licensed store presence in Europe, the Middle East and Asia.

“This expanded footprint will strengthen its relationships with key brand partners by offering broader reach and enhanced visibility on a global level,” the retailers said in a news release.

Under the $2.5 billion deal, which was unveiled in May and approved last month by Foot Locker stockholders, Dick’s will continue to operate Foot Locker’s portfolio of brands, including Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos. Named to oversee those operations is Dick’s Executive Chairman, Ed Stack, who will lead the global Foot Locker businesses in partnership with two new presidents: Ann Freeman, a longtime former Nike executive, has been appointed President of Foot Locker North America and a soon-to-be-named President of its international unit.

The transaction is expected to deliver between $100 million to $125 million in cost synergies in the medium term, primarily through procurement and direct sourcing efficiencies, and Dick’s expects the transaction to be accretive to its earnings-per-share in its 2026 fiscal year (excluding transaction and other one-time costs to achieve synergies).

“We are committed to investing in and growing Foot Locker through its strong culture, led by the [in-store] Stripers staff, and creating a more powerful experience for consumers,” said Stack.

At one point, it looked like the deal could face antitrust scrutiny from federal regulators, after U.S. Sen. Elizabeth Warren sent a letter Federal Trade Commission and the U.S. Department of Justice saying that the merger could cut jobs, raise prices and reduce competition. However, no objections to the deal were subsequently raised by either agency.