3rd Jun 2021 09:20
(Alliance News) - JD Sports Fashion PLC on Thursday said it will sell Sports Unlimited Retail BV to Iberian Sports Retail Group SL for EUR16.5 million.
The Manchester-based sportswear retailer owns 50% of Iberian Sports, a subsidiary based in Spain. As such, JD Sports will continue to make strategic decisions about the future of Sports Unlimited, the company said.
JD Sports explained that Iberian Sports' focus on sporting goods meant that it was better placed to understand the market and "drive growth" at Sport Unlimited. In comparison, the core JD Sports brand is focused on sports and leisure fashion.
Iberian Sports is expected to pay EUR16.5 million for Sports Unlimited upon the completion of the sale later in June. The purchase will be funded with Iberian Sports' cash balance and other resources.
JD Sports Executive Chair Peter Cowgill said: "We have an excellent management team at [Iberian Sports] and, having successfully integrated the Sport Zone business into its operations, this is the right time for [Iberian Sports] to further expand its geographical reach. By consolidating our sporting goods businesses under the [Iberian Sports] umbrella, we are absolutely confident that the transfer of [Sports Unlimited] to [Iberian Sports] will bring long term development opportunities to both the team at [Sports Unlimited] and their international brand partners."
JD Sports shares were trading down 0.3% at 946.60 pence each in London on Thursday morning.
By Scarlett Butler; [email protected]
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