7th Oct 2015 06:38
LONDON (Alliance News) - Sports Direct International PLC on Wednesday said it reached an agreement to acquire Irish clothing retailer Warrnambool, which trades as Heatons, for EUR47.5 million.
Sports Direct said it has agreed a deal with Sandra Minor, a minority shareholder in Warrnambool, to acquire her stake in the business and increase Sports Direct's holding to just over 50%. In addition, it has agreed a conditional put and call option agreement with the remaining shareholders in the company to buy the remainder of the business.
Warnnambool is the holding company for Heatons, a Republic of Ireland and Northern Ireland-based clothing retailer. The stores already contain Sports Direct-branded sections or are located close to existing Sports Direct stores in both countries, the company said. Warnnambool also currently operates a further five standalone Sports Direct stores in Northern Ireland.
The total cash consideration for the deal will be EUR47.5 million, covering both the stake acquisition and the put and call option, and will be funded from Sport Direct's existing facilities.
"We look forward to accelerating investment into the existing store portfolio and strengthening the Heatons and Sports Direct brands across Ireland," said Dave Forsey, Sports Direct's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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