JD Sports Fashion has signed a joint venture (JV) agreement to acquire a 15% stake in South Korean retailer Shoemarker’s (SMK) subsidiary Hot-T fascia (Hot-T) in order to enhance its global footprint.

The £5.5m proposed acquisition is set to mark JD’s entry into the South Korean market.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Under the terms of the agreement, the company has the option to further enhance its stake by 35% at the end of the year.

The sports retailer plans to exercise the option and to re-fascia the Hot-T stores as JD.

"This JV will further strengthen JD's global presence."

If the plan materialises, net assets of Hot-T are expected to be integrated into JD's accounts.

See Also:

JD Sports Fashion executive chairman Peter Cowgill said: "We are delighted to be entering into this JV, which gives JD the opportunity to enter a new market of over 50 million people with a proven operator. This JV will further strengthen JD's global presence."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Even after the transaction is completed, Hot-T’s existing management team will continue to oversee its operations.

SMK operates two retail businesses, namely footwear retailer Shoemarker and athletic goods supplier Hot-T.

Dealing in sporting goods, Shoemarker has 114 stores in South Korea, while Hot-T has 23 stores, as well as its own website.

For the year ended 31 December last year, Hot-T’s revenue was KRW25.5bn (£16.9m), while its earnings before interest, tax, depreciation and amortisation (EBITDA) stood at KRW3bn (£1.99m).

In its latest half-year results, JD Sports, which has more than 1,200 stores across the UK and Europe, registered profit before tax of £102.7m, which represents an increase of more than 33% when compared to the corresponding period last year.