Sports Retailer Buying Footwear Co., Which Recently Relocated HQ To FL, For $2.5B

ST. PETERSBURG, FL — Dick’s Sporting Goods will purchase Foot Locker, which recently moved its global headquarters to St. Petersburg, in a $2.4 billion deal, according to a news release.

The sporting goods retailer plans to operate Foot Locker as a standalone business and maintain its separate brands, including Kids Foot Locker, Champs Sports, WSS, and Atmos.

The footwear and apparel retailer has about 2,400 retail stores in 20 countries and had $8 billion in net sales last year.

Both Dick’s and Foot Locker are Fortune 500 companies.

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"(This) marks the start of an exciting new chapter for Foot Locker and is a testament to our team's hard work and dedication to our mission," Mary Dillon, CEO of Foot Locker, said. "By joining forces with Dick’s, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry.”

Foot Locker shareholders can choose to receive either $24 or .1168 shares of Dick’s Sporting Goods common stock for each share of Foot Locker common stock.

“We are pleased to provide shareholders with a transaction structure that offers the choice of significant and immediate cash value or the opportunity to invest in the combined company and benefit from the substantial upside potential,” Dillon said. “I am proud of all that our teams around the world, including our Stripers, have accomplished to reach this milestone moment, and am confident this transaction represents the best path for our shareholders and other stakeholders."

Foot Locker’s stock plunged 41 percent this year.

The company signed a lease for 111,000 square feet at 570 Carillon Parkway, a Class A office building, earlier this spring to relocate its global headquarters to St. Petersburg.

“We’re proud to establish our new headquarters in St. Petersburg, a city that has warmly welcomed Foot Locker, Inc.," Frank Bracken, president of Foot Locker, said at the time the lease was signed. “As we accelerate our Lace Up Plan, we believe the metropolitan Tampa Bay area provides the perfect environment to align our internal teams, attract top talent, and connect with the local community. With many of our team members already calling this city home, we’re excited to deepen our roots, foster connectivity, and create greater alignment and inspiration for our team and brand partners to bring sneaker culture to life.”

The company’s move to St. Petersburg will bring about 150 jobs to the area and contribute $18 million to local payrolls and is expected to have about a $37 million local economic impact, Mayor Ken Welch wrote in a Facebook post.

“When a company of Foot Locker's size and influence relocates its headquarters, leadership, and team members to the Tampa Bay region, it’s an investment in the promise of St. Pete’s culture, workforce, and local economy,” the mayor wrote, adding, “This is a big win for St. Pete, and we’re just getting started! We remain committed to sustaining an impactful business environment so companies of all sizes can call St. Petersburg home.”

Foot Locker announced a turnaround plan in 2023 in part to help improve its relationship with big brands. Speaking at the J.P. Morgan Retail Round Up Conference last month, Dillon said that Foot Locker is working closely with Nike, specifically in categories including basketball, sneaker culture and kids.

The Associated Press contributed reporting to this article.