Companies

JD Sports to take full control of the Iberian Business

Jul 10, 2023 United Kingdom

The UK-based retailer intends to buy the remaining 49.98% shares in the Iberian Sports Retail Group (ISRG) for 500.1 million euros, thereby acquiring 100% ownership

This transaction, funded from the group's existing cash resources, will complete the acquisition process that began in May. Currently, these shares are held by Balaiko Firaja Invest (19.99%), Sonae Holdings (29.99%) and other minority parties. This move is aligned with the expansion plan previously announced by the company.

“At our Capital Markets Event earlier in the year, we emphasised the benefit of having strong complementary concepts to support our 'JD first' global growth strategy. ISRG is a highly successful business and one of the leading players in sports retail in Iberia. By bringing the two businesses closer together, there is significant potential for accelerating growth”, commented Régis Schultz, CEO of JD Sports.

ISRG, which operates more than 460 stores across Europe (including JD in Iberia, Sprinter in Spain, Sport Zone in Portugal and Aktiesport and Perry Sport in the Netherlands), saw its consolidated revenue for the year that ended on the 31^st of January increase to 1.24 billion euros from 1.04 billion euros in the previous year and the consolidated pre-tax profit grew to 96.6 million euros from 73.2 million euros.

The Iberian business also has a 98% holding in the Deporvillage online business and a 50.1% holding in the Bodytone fitness equipment business.

Image Credits: pt.fashionnetwork.com

United Kingdom Acquisitions Footwear JD Sports Retail Sportswear Strategy