UK fashion retailer JD Sports’ Genesis Holdings has acquired Shoe Palace in the US for a total cash consideration of $325m.
As part of this transaction, JD’s existing wholly owned intermediate holding company in the US, Genesis, acquired 100% of both the issued shares in the Shoe Palace Corporation and the members’ interests in Nice Kicks.
Based in San Jose, California, Shoe Palace is operated by four brothers from the Mersho family (Mersho Brothers).
The retailer currently operates 167 stores, with the majority trading under the Shoe Palace banner.
JD Sports Fashion executive chairman Peter Cowgill said: ”We are delighted to have completed the acquisition of Shoe Palace. The Shoe Palace team are ambitious, have great energy and pride themselves on their consumer connection and we welcome them to the group.
“We are confident that our combined fascias will provide us with the flexibility and expertise to fulfil our mutual ambition of becoming a prime customer destination for sneakers and lifestyle apparel in the US.”
The acquisition is subject to customary cash / debt and working capital adjustments.
Following the acquisition, Mersho Brothers will continue to manage the Shoe Palace business and they will be issued with equity in Genesis.
However, the company reveals that JD Finish Line and Shoe Palace teams would ‘begin to share ideas and best practices’ starting next year.
The Mersho Brothers will own 20% of the enlarged group in the US.
Shoe Palace CEO George Mersho said: “Through this combination with JD and Finish Line in the US, we have gained a strong global partner. We look forward to being part of the JD family and continuing to serve our customers and communities for many years to come.”