8th Oct 2015 13:30
LONDON (Alliance News) - Sports Direct International PLC Thursday said it is planning a multi-million investment in the Heatons store portfolio after it revealed on Wednesday that it is buying the Irish clothing retailer for EUR47.5 million.
The sportswear and equipment retailer said it will invest substantially in Heatons over the first full year of ownership, confirming that it expects to complete the acquisition of the shares it doesn't already own by April 2016.
Sports Direct already owns 50% of Heatons, and after acquiring the remaining 50% for EUR47.5 million, the business will have an imputed value of EUR95 million.
The retailer Wednesday said it has agreed a deal with Sandra Minor, a minority shareholder in Warrnambool, the holding company of Heatons, 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.
Some of Heatons stores, of which there are 44 in the Republic of Ireland and 15 in Northern Ireland, 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.
"With a couple of years of continuous investment and by allying the stores to our other Sports Retail operations, I think we will see this is an exceptional acquisition for our shareholders. The Republic of Ireland is the fastest growing economy in Europe, our closest neighbour, the only country with a land border with the UK and is a nation of sport fanatics. Our unique offering, when fully available, will be transformative. The Irish retail sector grew 9.3% last year with clothing and footwear growing at 12.8%, according to the Central Statistics Office, so it is a great place to be," Chief Executive Dave Forsey said in a statement.
Shares in Sports Direct were trading down 1.0% at 735.00 pence Thursday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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