UK-based sportswear retailer JD Sports Fashion (JD) has signed a conditional agreement to acquire an 80% holding in online sporting goods retailer Deporvillage.
JD will acquire the stake for a total cash consideration of €140.4m ($167m) subject to customary cash/debt and working capital adjustments.
Of this cash consideration, €40.4m ($48m) has been deferred and will be paid depending on the business’ performance till 31 December.
The transaction is being carried out through JD’s 50.02% intermediate holding company, Iberian Sports Retail Group SL (ISRG), which is based in Spain.
Based in Manresa, Catalonia, Deporvillage sells specialist sports equipment focusing on cycling, running and outdoor pursuits.
From 2013 to 2018, the company launched country-specific websites in Italy, France, Portugal, Germany and the UK.
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For the year ending on 31 December 2020, Deporvillage posted revenues of €117.8m ($140m) and a profit before tax of €7.7m ($9.1m).
JD executive chairman Peter Cowgill said: “Deporvillage has a strong consumer-centric approach and is the market leader in its categories in Spain, with significant potential for further international development.
“We look forward to closing the transaction and welcoming the Deporvillage team to [JD].”
Deporvillage is expected to strengthen JD’s online capabilities in the sports equipment market and support development across the company’s existing portfolio.
The completion of the deal will depend on antitrust approval.
Once the deal is completed, Deporvillage’s founders Xavier Pladellorens and Ángel Corcuera will continue to hold 20% shares in the business and remain in the business as chief executive officer and chief purchasing officer respectively.
Earlier this month, JD reached a non-binding headline agreement to divest its Sports Unlimited Retail business to ISRG.
Based in the Netherlands, Sports Unlimited Retail is a wholly-owned company operating under the Aktiesport and Perry Sport fascias.
The €16.5m ($19.7m) deal is expected to be completed on 30 June. After it is completed, JD will continue making strategic decisions that pertain to Sports Unlimited Retail’s future.