JD Sports continues on its path to global domination, as it today agreed to buy out the remainder of its Spanish, Dutch and Portuguese arm Iberian Sporting Retail Group (ISRG) for €500 million (£427 million).
The sportswear retailer already owned just over half of ISRG, but hopes to have more control over the business as it plans to open 500 international shops over the next five years.
ISRG had made a profit of €96.6 million last year on revenue of €1.24 billion. As well as stores under the JD brand, it operates Sprinter in Spain, Sport Zone in Portugal and Aktiesport and Perry Sport in the Netherlands.
CEO Régis Schultz said: “By bringing the two businesses closer together, there is significant potential for accelerating growth.
“We sincerely thank the minority shareholders for their important contributions to the business during our time as partners.”
The minority stake had been held between Sonae Holdings. and Balaiko Firaja Invest.
Analysts at Peel Hunt noted that the acquisition came just days after a licensing deal in the Middle East, signalling JD’s aggression about global expansion.
They said: “Taking over the ‘other half’ of ISRG gives JD greater control of the growth in appealing European markets. There was progress last week with franchises starting in the Middle East, so JD is not dragging its feet as it grows across the world.
“We continue to believe that the global growth story here is materially undervalued.”
The deal is expected to close in October.
JD Sports shares ticked up 0.2p to 138.3p today.
