Bury-based FTSE 100 retailer JD Sports Fashion Plc said on Monday its Spanish unit would buy an 80% stake in Catalonia-based online sports equipment retailer Deporvillage SL for up to €140.4 million.
“JD Sports Fashion Plc … announces that … Iberian Sports Retail Group SL (ISRG), its existing 50.02% intermediate holding company in Spain, entered into a conditional agreement to acquire 80% of the issued shares in Deporvillage SL,” said JD Sports.
“Based in Manresa in Catalonia, Deporvillage is an online only retailer focussing on the sale of specialist sports equipment principally for cycling, running and outdoor.
“After launching initially in Spain in 2010, Deporvillage has expanded internationally with country specific websites launched subsequently in Italy (2013), France (2013), Portugal (2014), Germany (2018) and UK (2018).
“In the year to 31 December 2020, Deporvillage generated revenues of €117.8 million and delivered a profit before tax of €7.7 million.
“The gross assets at 31 December 2020 were €51.1 million.
“Deporvillage was established by Xavier Pladellorens and Ángel Corcuera who, after a number of fund raising exercises, are currently minority shareholders.
“Post completion, the management will retain a 20% holding in the business and will be continuing in their roles as chief executive officer and chief purchasing officer respectively.
“Completion of the acquisition is subject to receiving antitrust clearance.
“Total maximum cash consideration for the acquisition of the initial 80% holding in Deporvillage, subject to customary cash / debt and working capital adjustments, is €140.4 million, of which €40.4 million has been deferred and will be paid contingent on the performance of the business to 31 December 2021.
“The cash consideration is being funded from the group’s cash resources and existing bank facilities.
“Additionally, a number of put and call options, to enable future exit opportunities for Xavier Pladellorens and Ángel Corcuera have also been agreed, which commence two years after closing.
“The acquisition of Deporvillage, when completed, will enhance the group’s authenticity in key sports categories, significantly increase its digital capabilities in the sports equipment market and will complement the ongoing positive developments in the group’s existing Sprinter and Sport Zone fascias.”
JD Sports Fashion executive chairman Peter Cowgill 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.”