12th Mar 2021 08:14
(Alliance News) - JD Sports Fashion PLC on Friday said it has agreed to buy a 60% stake in Krakow, Poland-based Marketing Investment Group SA.
The FTSE 100-listed sportswear retailer said MIG, which operates 410 retail stores and associated trading websites selling sports fashion footwear, apparel and accessories across nine central and eastern European countries, generated GBP200 million revenue in 2020.
The agreement is conditional on approval by the competition authorities in Poland.
No financial details of the deal were given, with JD noting that the size of the transaction does not meet the thresholds for mandatory notification. However, it confirmed that put and call options have been agreed in order to enable future exit opportunities for the sellers "with whom we will work in partnership".
"This is an exciting acquisition for JD that will further build on the success of our international development strategy, expanding our operations into central and eastern Europe. We have observed and admired the development of MIG over a number of years and we are confident that the combination of their highly experienced and knowledgeable management team, together with the expertise of the JD leadership team, will provide the group with strong foundations from which to successfully optimise the opportunities in the region," said Executive Chair Peter Cowgill.
JD Sports's push into eastern Europe follows a number of recent deals in the US, with the firm in February agreeing to buy Baltimore, Maryland-based footwear and apparel streetwear retailer DTLR Villa LLC for USD495 million and in December snapping up San Jose, California-based Shoe Palace for USD325 million.
Shares in JD Sports Fashion were up 0.1% at 827.32 pence in London on Friday.
By Zoe Wickens; [email protected]
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