JD Sports to buy remaining shares of Footasylum
UK-based retailer JD Sports has agreed to buy the remaining shares of Footasylum, in a cash deal, a month after it took an initial stake in the company
The Boards of Directors of JD Sports Fashion plc (JD) and Footasylum plc (Footasylum) announced they have reached an agreement on the terms of a recommended cash offer for Footasylum by JD, pursuant to which JD will acquire the entire issued and to be issued ordinary share capital of Footasylum (other than the Footasylum Shares which JD already owns). Under the terms of the Offer, Footasylum Shareholders will receive 82.5 pence in cash for each Footasylum Share.
The Offer values the entire issued and to be issued ordinary share capital of Footasylum at up to approximately 90.1 million British pounds. The cash consideration payable pursuant to the offer will be financed from JD's existing cash resources and facilities.
Peter Cowgill, Executive Chairman of JD, commented: "We are pleased to make this offer for Footasylum, which is very complementary to our existing businesses in the UK. 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".
Barry Bown, Executive Chairman of Footasylum, added: "The Footasylum Board has concluded that the offer represents the best strategic option for Footasylum and its employees. 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."
JD management believes that there will be significant operational and strategic benefits from a combination of the two businesses. JD is a specialist multi-channel retailer of fashionable branded sports and casual wear, combining globally recognised brands with a number of strong own brand labels. It owns over 2 400 stores across 18 countries. Footasylum is a UK-based fashion retailer founded in 2005 focusing on the footwear and apparel market. It retails "on-trend" product ranges which are predominantly aimed at 16 to 24-year-old fashion-conscious customers and are sourced from an extensive stable of third party and own brands. These include well-known sports and casual footwear and apparel brands, as well as up-and-coming brands and own label products.
JD Sports acquired Finish Line, the American athletic retailer, last year for 558 million US dollars.
Photo by Colin Watts on Unsplash
