Sports Direct International, a British retail group, has acquired controlling stakes in two sporting goods retail companies, Austrian Sports Eybl & Sports Experts (EAG) and Sportland International Group (SIG) in the Baltic region.
In an agreement with EAG, Sports Direct has acquired 51% ownership through its subsidiary SportsDirect.com Retail for €40.5m.
The total deal amount includes €10.5m payable to the stakeholders of EAG-EYBL Holding and LUDWIG EYBL Privatstiftung and €30m for subordinated debt in EAG.
Sports Direct has also obtained an option to acquire remaining interest in EAG from the owner, the Eybl Family for €15.5m.
The option is exercisable following the closure of current agreement scheduled on 31 December 2019.
The Eybl Family, however, can carry out the sale of remaining stake with Sports Direct for €5m during the interim period.
EAG comprises 30 Eybl outlets under regular and mega store formats averaging size of 2,000m2 and 7,500m2 respectively and 28 Sports Experts stores with average store size of 2,500m2.
Sports Direct has also acquired 60% stake in sporting goods retailer SIG that operates SPORTLAND, Sportland Outlet, Timberland, O’Neill, NIKE and Nike Outlet retail chains in Estonia, Latvia and Lithuania.
Commenting on the developments, Sports Direct International chief executive Dave Forsey remarked that the acquisition of the two retailers marks its strategic expansion in the European markets.
"Expected benefits from these investments include increased scale for our international business, growing international awareness of our Group Brands and additional expertise in specialist product categories such as winter sports," added Forsey.