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Dick's Sporting Goods is reportedly nearing an estimated $2.4 billion deal to purchase rival footwear retailer Foot Locker, the company announced in a statement obtained by CBS News on Thursday (May 15).
Dick's confirmed that it expects to continue Foot Locker as a standalone unit, which would include keeping its brands such as Kids Foot Locker, Champs Sports, WSS and Japanese sneaker brand atmos, in operation.
"Sports and sports culture continue to be incredibly powerful, and with this acquisition, we'll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases," Dick's CEO Lauren Hobart said in the statement.
The sale was initially reported by the Wall Street Journal on Wednesday (May 14). The companies had reportedly discussed a sale of $24 per share, which would represent an 86.5% premium to the stock's last closing price as shares of Foot Locker spiked 62% in extended trading, while Dick's Sporting Goods was down about 5%.
Foot Locker shareholders will be given the option to receive either $24 in cash or 0.1168 shares of Dick's common stock for every share of stock they currently own, according to CBS News.