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.”