British sporting goods retailer JD Sports Fashion makes a €520m takeover bid for French sporting goods retailer Courir.
That amount includes 325 million euros in cash and 195 million euros for debt assumption, JD Sports announced on Tuesday. Negotiations began on Monday with Equistone Partners Europe, a London-based private equity firm that owns “the majority” of Courir’s capital.
“We are pleased to announce a proposal to acquire Courir, a highly respected company in the European sportswear industry. We look forward to completing the proposed transaction, welcoming the Courir team and working with management to realize Courir’s global potential,” said Régis Schultz, Managing Director of JD Sports in the announcement.
Courir operates 313 of its own branches
The transaction is subject to the approval of the European competition authorities and is therefore not expected to be completed before the second half of the year.
“Headquartered in France, Courir is a leading player in the sportswear industry in Europe and operates 313 own stores in six countries”, mostly in France but also in Spain, Belgium, Portugal, the Netherlands and Luxembourg, “plus 36 franchised stores in West Africa, in the Middle East and in the French overseas territories,” the statement said in detail.
In the 2022 financial year, Courir recorded sales of 609.8 million euros and earnings before interest and taxes of 47.4 million euros. JD Sports Fashion shares rose 2.71 percent to 167.05 pence as the London Stock Exchange opened in an otherwise quiet market.
With this plan, the group aims to expand its position as a leading global sportswear specialist and to focus on its sports portfolio, having divested 14 of its fashion-focused brands to Britain’s Frasers Group earlier in the year. Speaking to Courir, JD explained that the retailer’s brand identity, leadership team and operational infrastructure will remain in place, but will be managed from JD’s French offices.
JD simplifies European minority holdings
Alongside the acquisition, and as part of the newly unveiled strategy, the group also said it would simplify minority stakes in its European subsidiaries to gain better control over their long-term development.
To this end, JD has completed the acquisition of the remaining 20 percent of JD Sports Fashion Germany and has entered into discussions with Balaiko Firaja Invest and Sonae Holdings, which together hold 49.98 percent of Iberian Sports Retail Group (ISRG), on future ownership.
JD said there were three possible outcomes of these talks, including the minority parties acquiring it outright, the duo acquiring 50.2 percent of ISRG, or no change to the current ownership structure.
“Securing greater control over JD’s long-term development and prioritizing the development of the JD brand is a key pillar in our growth strategy in Europe,” said Schultz, CEO of JD. “It will simplify our decision-making processes, allowing us to to use our resources more efficiently. At the same time, the organizational structure of the group will be significantly simplified.” (AFP/ Fashion United)
This translated post previously appeared on FashionUnited.fr with the help of Rachel Douglass.