JD buys Cecil Gee and invests £17m in Spain
RETAILER JD Sports Fashion revealed a double expansion thrust today with two deals aimed at diversifying its offer at home and abroad.
The larger of the two transactions sees the Bury company investing €20m (£17.6m) to set up a joint venture business in Spain.
It has teamed up with the founders and investors of the 47-strong Sprinter chain to create JD Sprinter Holdings. JD has 50.1% of the new company which has acquired the trading businesses that make up the Sprinter group.
Sprinter was founded in 1981 and is one of the leading sports retailers in Spain selling footwear, apparel, accessories and equipment for a wide range of sports as well as some lifestyle casual wear including childrenswear.
This offer includes both international sports brands and successful own brands. Sprinter is based in Elche in South East Spain and currently has 47 stores primarily based in Andalucia and Levante.
The remaining stake in JD Sprinter are owned equally between the Segarra family, which founded Sprinter, and the Bernad family, who have been investors in Sprinter for 15 years.
JD has investment of €20m into JD Sprinter by way of subscription for its new shares and the Segarra and Bernad families have put the Sprinter companies into JD Sprinter as consideration for their new shares.
JD said the deal would allow it to expand its operations in Europe, with both stores and its licensed brands.
While the Sprinter store chain is expected to grow, the more fashion-oriented JD concept will be launched in Spain too in a separate JV between JD and JD Sprinter, which will be 65% owned by the group.
In the year to December 2009 Sprinter had a turnover of €80m profit before tax of €2.1m.
In a separate transaction JD said it had acquired the business and assets of eight stores trading as Cecil Gee along with the Cecil Gee name.
This deal, for £1.7m from menswear firm Moss Bros, will allow JD to develop a new premium branded fashion offer.
Peter Cowgill, Executive Chairman of JD, said: “We are very pleased to announce these two acquisitions which both result from our strategy of selectively expanding our European retail presence and increasing our exposure to a broader portfolio of premium brands.
“We look forward to working with the very experienced and knowledgeable management team in Spain and bringing our own expertise to bear as we continue to develop JD’s presence in Europe.
“At the same time, the acquisition of the Cecil Gee stores provides us with a low risk springboard for the development of a well funded profitable premium brand fashion chain.”
