1. News
February 5, 2018

JD Sports completes Sport Zone acquisition

UK-based branded sportswear retailer JD Sports Fashion (JD) has obtained clearance from the European Commission to acquire Sport Zone from its parent company Sonae.

UK-based branded sportswear retailer JD Sports Fashion (JD) has obtained clearance from the European Commission to acquire Sport Zone from its parent company Sonae.

Sonae is reported to be one of the leading sports retailers in Spain and Portugal.

Last September, JD exchanged conditional contracts to combine Sport Zone with its existing Iberia-based business JD Sprinter Holdings (JDSH).

For the acquisition, JD has agreed to pay Sonae a stake of approximately 30% in JDSH and cash of €7.1m.

“There are significant opportunities to improve operational efficiencies and profitability over the long term across the enlarged Iberian business.”

JD has also agreed to acquire shares in JDSH from Balaiko Firaja Invest (Balaiko), which is the investment vehicle for the current minority family shareholder in JDSH.

JD executive chairman Peter Cowgill said: “We are delighted that this transaction, which gives us a significantly enhanced presence across Iberia, has now formally completed.

Content from our partners
Advanced analytics and predicting market trends in FMCG
How smart predictive analytics is shaping product development
Data analysis in the brave new world

“The financial benefit derived from Sport Zone will depend on how quickly we can deal with the store portfolio, rejuvenate the offer and realise the necessary cost reductions and synergies.

“We, therefore, do not anticipate that the acquisition will be immediately earnings enhancing. However, we remain firm in our belief that, utilising the skills of the very experienced and knowledgeable management team at Sport Zone and our own expertise, there are significant opportunities to improve operational efficiencies and profitability over the long term across the enlarged Iberian business.”

The company noted that the other conditions to the transaction have also now been satisfied, and has enabled JD to formally complete the acquisition of Sport Zone.

With the completion of the acquisition, JD is reported to have further expanded its footprint across Portugal, Spain and Canary Islands.