Acquisitions (6983I)
June 20 2011 - 2:00AM
UK Regulatory
TIDMJD.
RNS Number : 6983I
JD Sports Fashion Plc
20 June 2011
20 June 2011
JD Sports Fashion Plc
Acquisitions of Sprinter Businesses (Spain) and eight Cecil Gee
Stores (UK)
JD Sports Fashion Plc ("JD"), the leading retailer of sport and
athletic inspired fashion apparel and footwear, announces that on
17 June 2011, its newly incorporated 50.1% subsidiary JD Sprinter
Holdings 2010 S.L. ("JD Sprinter"), acquired the trading businesses
that make up the Sprinter group of companies in Spain
('Sprinter').
Sprinter was founded in 1981 and is one of the leading sports
retailers in Spain selling footwear, apparel, accessories and
equipment for a wide range of sports as well as some lifestyle
casual wear including childrenswear. This offer includes both
international sports brands and successful own brands. Sprinter is
based in Elche in South East Spain and currently has 47 stores
primarily based in Andalucia and Levante.
The remaining 49.9% of the shares in JD Sprinter are owned
equally between the Segarra family, who founded Sprinter, and the
Bernad family, who have been investors in Sprinter for 15 years. JD
have made an investment of EUR20.0m into JD Sprinter by way of
subscription for its new shares and the Segarra and Bernad families
have put the Sprinter companies into JD Sprinter as consideration
for their new shares.
Sprinter's experienced management team and established
infrastructure provides JD with the opportunity to expand its
European retail presence and the distribution of its own and
licensed brands. It is our intention that the Sprinter store chain
will continue to grow and a joint venture is being established
between JD Sprinter and JD (in which JD will have an effective
shareholding of 65%) to rollout JD as a more fashion oriented
retail fascia in Spain, emulating the UK format.
For the year ended 31 December 2009, the four Sprinter
businesses had a consolidated turnover of EUR80.0m (after adjusting
for intercompany turnover between the four businesses), an
operating profit of EUR2.1m, a profit before tax of EUR2.1m and
aggregated gross assets of EUR57.3m although these aggregated gross
assets do not reflect consolidation adjustments which would
ordinarily be made if there was a group structure in place. On a
proforma consolidated basis, the net assets at acquisition are
approximately EUR5m.
Separately, on 18 June 2011 JD acquired the business and assets
of eight stores trading as Cecil Gee along with the Cecil Gee name
and an appropriate level of stock from Moss Bros Group plc for a
total net consideration of GBP1.7m. It is our intention to continue
to trade these stores with an enhanced but similar premium branded
fashion offer.
Peter Cowgill, Executive Chairman of JD, said:
"We are very pleased to announce these two acquisitions which
both result from our strategy of selectively expanding our European
retail presence and increasing our exposure to a broader portfolio
of premium brands. We look forward to working with the very
experienced and knowledgeable management team in Spain and bringing
our own expertise to bear as we continue to develop JD's presence
in Europe. At the same time, the acquisition of the Cecil Gee
stores provides us with a low risk springboard for the development
of a well funded profitable premium brand fashion chain."
Enquiries:
JD Sports Fashion Plc Tel: 0161 767 1000
Peter Cowgill, Executive Chairman
Barry Bown, Chief Executive
Brian Small, Finance Director
MHP Communications Tel: 0203 128 8100
Andrew Jaques
Barnaby Fry
Ian Payne
This information is provided by RNS
The company news service from the London Stock Exchange
END
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