JD Sports (LSE: JD) announced on Friday its intention to acquire the outstanding 50% of Iberian Sports Retail Group SL, valued at €500.1 million.
Iberian Sports Retail is a prominent sports retail group with over 460 stores across Europe, including JD in Iberia, Sprinter in Spain, Sport Zone in Portugal, and Aktiesport and Perry Sport in the Netherlands. Additionally, it holds a 98% stake in the Deporvillage online business and a 50% stake in the Bodytone fitness equipment business.
JD Sports will purchase the remaining stake in Iberian Sports Retail from Firaja Invest SL and Sonae Holdings SA. The acquisition will be financed through JD Sports’ existing cash resources, based in Bury, Lancashire. Upon completion, JD Sports will become the sole owner, holding a 100% stake in the company.
Chief Executive Regis Schultz highlighted the strategic value of the acquisition, stating, “At our Capital Markets Event earlier this 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.”
In the financial year ending January 31, Iberian Sports Retail reported a pretax profit of €96.6 million on revenue of £1.24 billion, representing year-on-year growth of 32% and 19% respectively.
Following the announcement, JD Sports shares opened flat in London this morning.
