The deal values the entire issued and to be issued ordinary share capital of Footasylum at 82.5p a share in cash.
Jd Sports will finance the total cash consideration from its existing cash resources and facilities. It also believes that the transaction will offer significant operational and strategic benefits for both companies.
“We believe that there will be significant operational and strategic benefits through the combination of the very experienced and knowledgeable management team at Footasylum and our own expertise.”
The sportswear retailer also noted that the combined business will focus on the new business opportunities on a standalone basis.
In addition, the directors of Footasylum expressed their intention to recommend unanimously its shareholders to accept the offer.
“It believes the offer fairly reflects Footasylum ‘s current market position and prospects on a standalone basis and, as such, that Footasylum shareholders should be given the opportunity to realise value from the offer.”
Established in 2005, Footasylum offers a range of sports and casual footwear and apparel brands, as well as own label products.