JD Sports to buy majority stake in Spain’s Deporvillage in £120 million deal
28 June 2021, 13:24
JD Sports shares nudged lower after it told investors it had sealed a conditional agreement to buy an 80% share.
JD Sports is set to buy a majority stake in Spanish retailer Deporvillage in a deal worth about £120 million (140.4 million euros).
Shares in JD Sports nudged lower on Monday after it told investors it had sealed a conditional agreement to buy an 80% share in the Catalonian business.
Deporvillage is an online-only retailer which focuses on the sale of specialist sports equipment, particularly for cycling, running and outdoor activities.
It was founded in Spain in 2010 but has since expanded across Europe and launched in the UK in 2019.
JD said the business generated revenues of 117.8 million euros (£101 million) in 2020, and a pre-tax profit of 7.7 million euros (£6.6 million).
The company’s current management will retain the other 20% holding in the business after the deal is ratified.
It comes as part of an acquisition spree which has already seen JD strike deals for US footwear label DTLR and Manchester-based menswear retailer Oi Polloi.
Last week, trade title Drapers also reported that JD Sports has acquired a majority stake in Manchester-based fashion business Missy Empire for an undisclosed amount.
Peter Cowgill, executive chairman and founder of the group, said: “Deporvillage has a strong consumer-centric approach and is the market leader in its categories in Spain with significant potential for further international development.
“We look forward to closing the transaction and welcoming the Deporvillage team to the Group.”
Shares in JD dipped by 0.5% to 948p on Monday morning.
