7th Jul 2023 07:53
(Alliance News) - JD Sports Fashion PLC on Friday said it intends to acquire the remaining 50% of Iberian Sports Retail Group SL that it does not already own for EUR500.1 million.
Iberian Sports Retail operates more than 460 stores across Europe including JD in Iberia, Sprinter in Spain, Sport Zone in Portugal and Aktiesport and Perry Sport in the Netherlands.
Iberian Sports Retail also has a 98% holding in the Deporvillage online business and a 50% holding in the Bodytone fitness equipment business.
JD Sports is acquiring the remaining 50% stake of Iberian Sports Retail from Firaja Invest SL and Sonae Holdings SA. The acquisition will be funded from the Bury, Lancashire-based retail chain's existing cash resources. Upon completion, JD will own 100% of the company.
"At our Capital Markets Event earlier in the year, we emphasised the benefit of having strong complementary concepts to support our 'JD first' global growth strategy. ISRG is a highly successful business and one of the leading players in sports retail in Iberia. By bringing the two businesses closer together, there is significant potential for accelerating growth," said Chief Executive Regis Schultz.
For the financial year that ended January 31, Iberian Sports Retail reported a pretax profit of EUR96.6 million on revenue of GBP1.24 billion. This represented annual growth of 32% and 19%, respectively.
By Heather Rydings, Alliance News senior economics reporter
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