JD Sports Fashion, the London-listed fashion retailer, has announced its plans to purchase the remaining 49.98% stake of Iberian Sports Retail Group that it does not already own. The acquisition is valued at a total cash consideration of 500.1 million euros ($544.7 million).
After acquiring this stake from Balaiko Firaja Invest and Sonae Holdings, JD Sports Fashion will become the sole owner of Iberian Sports Retail Group. The company expects the purchase to be completed in October, following shareholder approval that will be sought in September. No antitrust filings are required for this transaction.
Iberian Sports Retail Group currently operates over 460 stores across Europe, including well-known brands such as JD in Iberia, Sprinter in Spain, Sport Zone in Portugal, and Aktiesport and Perry Sport in the Netherlands. Additionally, Iberian Sports Retail Group owns 98% of the Deporvillage online business and holds a 50.1% stake in the Bodytone fitness equipment business.
JD Sports Fashion sees opportunities for further development of Sprinter and Sport Zone under its ownership. The company believes that Iberian Sports Retail Group will play an integral role in expanding its presence not only in the region but also beyond.
As the sellers are considered related parties, the completion of this transaction is conditional upon shareholder approval. A general meeting is scheduled for September to seek approval. JD Sports Fashion has already received confirmation from shareholders representing 51.6% of its share capital who intend to vote for the purchase.