Dick’s Sporting Goods is buying athletic apparel conglomerate Foot Locker, which recently secured space to house its global headquarters in St. Petersburg, for $2.4 billion.
The omni-channel sporting goods retailer announced the merger early Thursday morning. Foot Locker is the second major U.S. footwear company to sell in less than two weeks as the industry navigates steep new tariffs on production.
Dick’s plans to operate Foot Locker as a standalone entity and keep its brands, which includes Champ Sports and Kids Foot Locker. The acquisition will expand Dick’s presence in malls and international markets.
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated ‘Stripers’ have built within the communities they serve,” said Ed Stack, executive chairman of Dick’s, in a prepared statement. “By applying our operational expertise to this iconic business, we see a clear path to further unlocking growth and enhancing Foot Locker’s position in the industry.”
The acquisition came less than two months after Foot Locker announced it secured 110,998 square feet of Class A office space in north St. Petersburg. City officials have touted the addition of a third Fortune 500 company, and expect the company’s move from Manhattan to create $18 million in new local salaries.
Foot Locker will occupy the first, third and fourth floors at 570 Carillon Parkway in St. Petersburg’s business-centric Gateway area if those plans progress. Mayor Ken Welch called the relocation “an investment in the promise of St. Pete’s culture, workforce and local economy.”
The merger announcement does not mention plans for Footlocker’s new headquarters. Neither company immediately responded to a request for comment.
Foot Locker has long operated a corporate office at 140 Fountain Parkway N., about two miles away from the new headquarters in St. Petersburg. Local stakeholders have already met the company’s new president.
Frank Bracken, then-executive vice president, was the St. Petersburg Economic Development Corporation’s (EDC) keynote speaker for its eighth annual meeting in February. The organization was instrumental in bringing Foot Locker to the city.
“We congratulate Foot Locker and Dick’s Sporting Goods on this acquisition,” CEO Mike Swesey told the Catalyst. “At the EDC’s annual meeting earlier this year, Foot Locker president Frank Bracken talked about expanding sneaker culture, and we look forward to watching that happen as Foot Locker extends its reach in the sports retail industry.”
Bracken called Foot Locker a “beacon to attract talent” at the event. He also credited the city for its warm welcome.
“We’re proud to establish our new headquarters in St. Petersburg,” Bracken said March 31. “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.”
Pittsburgh-based Dick’s believes the acquisition, expected to finalize in the second half of 2025, will create a global platform within the sports retail industry. It will also oversee approximately 2,400 Foot Locker locations – mostly smaller stores in malls – in 20 countries.
Dick’s has grown into the nation’s largest sporting goods retailer with its big-box approach to stores. The company now operates over 850 flagship, Golf Galaxy, Public Lands and Going Going Gone! locations.
The merger will also foster additional experiential opportunities. “Building upon the groundbreaking learnings from Dick’s House of Sport and Foot Locker’s Reimagined Concept stores, the combined company will provide an unmatched immersive and innovative retail experience for consumers,” stated Thursday’s announcement.
Foot Locker CEO Mary Dillon said the acquisition “marks the start of an exciting new chapter.” She also credited her team’s “hard work and dedication to our mission.”
“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,” Dillon added. “We are pleased to provide our 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.”
Foot Locker shareholders can receive either $24 or .1168 shares of Dick’s common stock for each share of the former company they own. While Foot Locker’s stock price has dropped over 40% this year, shares surged nearly 84% to $23.65 before the start of trade Thursday.
Shoemaker Skechers announced investment firm 3G Capital was taking it private in a deal worth over $9 billion earlier this month. The industry has invested heavily in Asian production and has grown increasingly concerned with the president’s trade wars, particularly with China.
Dick’s believes the merger will strengthen relationships with brand partners, foster long-term growth and unlock operational efficiencies. The company expects to save “between $100 million to $125 million in cost synergies in the medium term.”
