JD Sports sells Dutch firm to Spanish subsidiary

Bury-based FTSE 100 retailer JD Sports Fashion Plc announced it agreed “non-binding headline terms” for the disposal of Sports Unlimited Retail BV (SUR), a wholly owned company based in the Netherlands operating under the Aktiesport and Perry Sport fascias, to Iberian Sports Retail Group SL (ISRG), its 50.02% subsidiary based in Spain.

The rationale for the transaction is that ISRG is more focused on the sporting goods sector than the core JD brand and therefore JD feel that the management team of ISRG will be better placed to drive growth and higher returns in SUR longer term,” said JD Sports in a stock exchange statement.

“However, as the parent to ISRG, JD will continue to make strategic decisions regarding the company’s future.

Consideration of €16.5m is expected to be payable on completion which ISRG will fund from existing cash balances and resources.”

JD Sports executive chairman Peter Cowgill said: “We have an excellent management team at ISRG and, having successfully integrated the Sport Zone business into its operations, this is the right time for ISRG to further expand its geographical reach.

“By consolidating our sporting goods businesses under the ISRG umbrella, we are absolutely confident that the transfer of SUR to ISRG will bring long term development opportunities to both the team at SUR and their international brand partners.”

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.