JD Sports Fashion eyes full ownership of Iberian Sports Retail Group for €500m

JD Sports Fashion, a renowned sports-fashion retail company, announced plans to acquire the remaining 49.98% stake in Iberian Sports Retail Group (ISRG) for a cash consideration of €500.1 million.

The acquisition will be financed using JD Sports Fashion’s available cash resources. The deal will result in JD Sports Fashion owning 100% of Iberian Sports Retail Group, which currently operates over 460 stores across Europe.

Iberian Sports Retail Group’s retail portfolio includes the JD brand in Iberia, Sprinter in Spain, Sport Zone in Portugal, and Aktiesport and Perry Sport in the Netherlands. ISRG also holds a 98% stake in the online business Deporvillage, and a 50.1% stake in the fitness equipment business Bodytone.

Sonae Holdings, S.A., and Balaiko Firaja Invest, S.L., currently hold 29.99% and 19.99% stakes in Iberian Sports Retail Group, respectively. Due to their stakeholder status, the transaction is considered a related party transaction and is contingent upon the approval of JD Sports Fashion’s shareholders at a General Meeting, expected to be held in September 2023.

JD Sports Fashion announces intent to acquire remaining stake in Iberian Sports Retail Group. Photo courtesy of Samuel Wiki/Wikimedia Commons.

JD Sports Fashion’s Board of Directors supports the transaction and intends to recommend shareholders vote in favor of the deal at the upcoming General Meeting. Directors holding shares in the company, as well as Pentland Group Limited, have confirmed their intention to vote in favor of the transaction. This confirms votes in favor from approximately 51.6% of the company’s issued share capital.

Régis Schultz — JD Sports Fashion Group CEO said: “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.

“We sincerely thank the minority shareholders, Balaiko and Sonae, for their important contributions to the business during our time as partners.”

With no antitrust filings necessary, upon the resolution’s approval by the company’s shareholders, the transaction is expected to be completed in October 2023.