S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
NEW YORK - Foot Locker, Inc. (NYSE:FL) shareholders have overwhelmingly approved the company’s acquisition by DICK’S Sporting Goods, Inc. (NYSE:DKS), with approximately 99% of votes cast in favor of the merger agreement at Friday’s special meeting. The decision comes as Foot Locker’s stock has surged over 42% in the past six months, according to InvestingPro data, reflecting strong market confidence in the deal.
The preliminary vote count showed that about 70% of all outstanding shares participated in the decision. The final voting results will be reported in a Form 8-K filing with the Securities and Exchange Commission.
Under the terms of the merger agreement announced on May 15, 2025, Foot Locker shareholders will have the option to receive either $24.00 in cash or 0.1168 shares of DICK’S common stock for each share of Foot Locker common stock owned, with no minimum or maximum cash or stock consideration requirements. With Foot Locker’s current market capitalization of $2.5 billion and a Financial Health Score rated as ’FAIR’ by InvestingPro, the deal terms appear to align with the company’s fundamental value.
"We are pleased with the results from our special meeting earlier today and thank our shareholders for their support as Foot Locker embarks on this exciting new chapter," said Mary Dillon, CEO of Foot Locker.
The transaction, which would combine two major players in the sporting goods and footwear retail sector, is expected to close in the second half of 2025, pending regulatory approvals and other customary closing conditions.
Foot Locker currently operates approximately 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia, and New Zealand, with additional licensed store presence in Europe, the Middle East, and Asia. The company generates annual revenue of $7.9 billion, though it has experienced a slight decline of 2.6% in the last twelve months.
The information in this article is based on a press release statement from Foot Locker, Inc.
In other recent news, Foot Locker, Inc. has been at the center of several significant developments. The company announced its first quarter results for 2025, which aligned with the pre-announcement indicating performance below consensus estimates. Despite efforts in store remodels and an updated loyalty program, sales trends have remained weak compared to the previous year. In a major move, Foot Locker is set to be acquired by Dick’s Sporting Goods, with the deal valuing Foot Locker at a total enterprise value of $2.5 billion. This acquisition has led UBS and Williams Trading to increase their price targets for Foot Locker to $24, with UBS maintaining a Neutral rating and Williams Trading a Hold rating.
The merger process between Foot Locker and Dick’s Sporting Goods has seen both companies extend the antitrust review period to allow the Federal Trade Commission additional time for assessment. Dick’s Sporting Goods plans to resubmit its notification to start a new 30-day waiting period. Additionally, Foot Locker has entered into a material definitive agreement related to the proposed merger, including an exchange offer for outstanding senior notes. Lastly, Foot Locker’s shareholders approved an amendment to the company’s 2007 Stock Incentive Plan during the 2025 Annual Meeting, further solidifying the company’s strategic financial maneuvers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.