JD takes £6.5m punt on Canterbury
JD Sports Fashion today bought the rugby and sports clothing brand Canterbury of New Zealand in a £6.5m deal.
The Bury company has also bought Canterbury’s European business out of administration, saving 15 jobs in Stockport and plans to re-hire around 30 staff previously made redundant.
JD, the star performer of the the sports fashion sector, recently bought the KooGa rugby brand from rival JJB Sports.
In a stock market statement JD said it believes both acquisitions can be developed profitably and that the global intellectual property rights will generate royalty income.
The Canterbury brand, which was owned by a Kuwait investment fund, was established in New Zealand more than 100 years ago and has become the world’s leading rugby apparel brand, distributing both technical and lifestyle product.
It is the current brand shirt sponsor of the international rugby union teams of South Africa and Australia and of many leading clubs worldwide.
Peter Cowgill, executive chairman of JD, said: “We are delighted with the acquisition of the Canterbury and Kooga brands, which will further diversify the group’s overall interests in the sports and related leisurewear markets.”
JD will license the Australasia and New Zealand brand while operating the brand itself in the UK and across Europe.
KPMG Corporate Finance advised on the deal. Partner Christian Mayo said:“This was a complex deal across different territories but one which ultimately ensures that this iconic sportswear brand will continue to have a global presence.”
Addleshaw Goddard acted as UK legal advisers to the vendor, Kuwait Finance House .
