Dick’s Sporting Goods Inc (NYSE: DKS) just signed a deal with Walmart Inc (NYSE: WMT) to buy Moosejaw – an online retailer that specializes in outdoor recreation apparel and gear.
The retail company aims at expanding its footprint with this acquisition in the not so crowded, multibillion-dollar outdoor market. Todd Spaletto – its Senior Vice President said in the press release:
We admire what Moosejaw has accomplished. We believe there’s potential to grow the Moosejaw business and provide compelling experiences and an expanded product assortment to its millions of loyal customers.
Walmart had bought Moosejaw in 2017 for $51 million. What Dick’s paying for it, though, is yet to be revealed. The stock market news arrives only a day after Walmart Inc issued disappointing guidance for its current financial quarter (read more).
Dick’s Sporting Goods had roughly $1.40 billion in cash and equivalents at the end of its latest reported quarter.
The retailer expects this acquisition that’s expected to close in March to help grow its eCommerce business as well. According to Moosejaw CEO Eoin Comerford:
Like Moosejaw, Dick’s sees a huge opportunity to bring more people to the outdoors. Together we will serve outdoor enthusiasts from beginners to experts across multiple channels and locations.
Comerford will report to Spaletto once the transaction is complete. Moosejaw will still operate independently, though. Earlier this month, Moosejaw partnered with Recurate to launch its resale platform ReTrail.
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