28th Jun 2021 09:49
(Alliance News) - JD Sports Fashion PLC on Monday said its Spanish subsidiary has agreed to acquire a majority stake in online sports retailer Deporvillage SL for up to EUR140.4 million.
The Manchester-based retailer said its existing 50% intermediate holding company in Spain, Iberian Sports Retail Group SL, has entered into a conditional agreement to acquire 80% of the shares of online specialist sports retailer, Deporvillage.
Deporvillage was founded in Spain, but now operates country-specific websites for Italy, France, Portugal, Germany and the UK. The retailer made EUR7.7 million in pretax profit, on revenue of EUR117.8 million in 2020. At the end of 2020, the company held EUR51.1 million in gross assets.
JD Sports said Iberian Sports will pay a maximum price of EUR140.4 million for Deporvillage, with EUR40.4 million deferred, to be paid based on the businesses' performance in 2021.
The purchase will be funded with the group's current cash resources and banking facilities.
Deporvillage Chief Executive Officer Xavier Pladellorens and Chief Purchasing Officer Angel Corcuera will continue to hold a 20% stake in the company. Both will retain their management roles, however, the deal includes a number of put and call options to provide the pair with future exit opportunities.
JD Sports explained that the acquisition would "enhance the group's authenticity in key sports categories, significantly increase its digital capabilities in the sports equipment market."
"Deporvillage has a strong consumer-centric approach and is the market leader in its categories in Spain with significant potential for further international development," JD Sports Chair Peter Cowgill added.
JD Sports shares were trading down 0.7% at 946.40 pence each in London on Monday morning.
By Scarlett Butler; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
JD Sports