1st Feb 2021 08:19
(Alliance News) -Â JD Sports Fashion PLC on Monday said it has agreed to buy Baltimore, Maryland-based footwear and apparel streetwear retailer DTLR Villa LLC for USD495 million.
Shares in the London-listed sportswear retailer were up 6.8% at 797.50 pence in London on Monday, making the stock the second best performer in the FTSE 100 in opening trade.
DTLR Villa is currently majority owned by BRS & Co and Goode Capital, and operates from 247 stores across 19 states, principally in the north and east of the US. In the year ended February 1, 2020, DTLR deliver earnings before interest, taxes, depreciation and amortisation of USD45.6 million and a pretax profit of USD1.6 million.
JD Sports's cash consideration is being funded from cash resources and existing bank facilities. The DTLR management team - headed up by Glenn Gaynor and Scott Collins, who will be continuing in their roles as co-chief executives - will also be reinvesting a portion of their proceeds back into DTLR in exchange for a new minority stake of around 1.4%.
JD Sports said the acquisition of DTLR will enhance its presence in the north and east region of the US and complements its existing JD and Finish Line brands alongside the recent acquisition of Shoe Palace based on the west coast.
"This is another exciting milestone in the group's development in the United States. Like Shoe Palace, DTLR pride themselves on the deep connection they have with their consumers and the active role they play in the communities that they serve. As such, we intend to retain the DTLR Villa fascia and its proposition,"said Chair Peter Cowgill.
JD Sports last week said it was exploring additional funding options with a view to "increasing its flexibility to invest in future strategic opportunities".
By Lucy Heming;Â [email protected]
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