JD Sports Fashion has announced its intention to acquire the remaining 49.98 percent stake in Iberian Sports Retail Group (ISRG), currently held by Balaiko Firaja Invest and Sonae Holdings, for a total cash consideration of €500.1 million, to be funded from the group’s existing cash resources. Upon completion of the transaction, the group will own 100 percent of ISRG.
ISRG currently operates more than 460 stores across Europe, including JD in the Iberian Peninsula, Sprinter in Spain, Sport Zone in Portugal, and Aktiesport and Perry Sport in the Netherlands. ISRG also holds a 98 percent stake in Deporvillage’s online business and a 50.1 percent stake in Bodytone’s fitness equipment business.
ISRG’s consolidated revenue for the year ending January 31, 2023, was €1,239.3 million (2022: €1,037.8 million), with consolidated profit before tax of €96.6 million (2022: €73.2 million). JD Sports believes that there are opportunities to further develop Sprinter and Sport Zone and that the ISRG team in Iberia will also play an important role in further developing the JD fascination in Iberia and beyond.
The company’s Board of Directors supports the transaction and intends to recommend that shareholders vote in favor of the resolution at the Annual General Meeting to be called in due course. In addition, Pentland Group Limited has confirmed its intention to irrevocably undertake to vote in favor of the resolution in respect of its entire interest in the company, representing approximately 51.6 percent of the issued share capital of the company. No antitrust filings are required for the completion of the transaction. Accordingly, the group currently expects the transaction to close in October 2023, subject to the approval of the resolution by the company’s shareholders.
Régis Schultz, CEO of JD Sports Fashion, said, “At our Capital Markets Event earlier in the year, we emphasized 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. We sincerely thank the minority shareholders, Balaiko and Sonae, for their important contributions to the business during our time as partners.”
Last May, JD Sports announced it would acquire 100 percent of the issued share capital of Groupe Courir S.A.S, a leader in the European athletic footwear and apparel sector with 313 stores under the Courir name in six European countries. In the course of this announcement, the company also disclosed that it has completed the acquisition of the remaining 20 percent in JD Sports Fashion Germany GmbH and is considering acquiring the remaining stake in ISRG currently held by the minority shareholders.
