JD Sports shareholders approve £432.41m acquisition of ISRG minority stake
Shareholders in Bury-based sports and athleisurewear retailer, JD Sports Fashion, unanimously agreed the acquisition of the almost 50% stake in Iberian Sports Retail Group (ISRG) that it does not own, in a cash deal worth €500.1m (£432.41m) .
The vote at a general meeting today (October 9) sanctioned the purchase of 49.98% of shares in ISRG from Balaiko Firaja Invest, SL and Sonae Holdings, SA.
The transaction is expected to close tomorrow, October 10.
In the year to January 31, 2023, ISRG achieved revenues of €1.347bn, which compared with €1.037bn in 2022. It made a pre-tax profit of €70.3m in the 2023 fiscal year, down from €73.2m the previous year.
JD Sports announced in May this year that it was in negotiations with minority stakeholders Balaiko Firaja Invest, SL and Sonae Holdings, SA.
ISRG currently operates more than 460 stores across Europe, including JD in Iberia, Sprinter in Spain, Sport Zone in Portugal and Aktiesport and Perry Sport in the Netherlands. ISRG also has a 98% holding in the Deporvillage online business and a 50.1% holding in the Bodytone fitness equipment business.
In July, JD Sports said it believes there are opportunities to continue to develop Sprinter and Sport Zone and that the ISRG team in Iberia also have an important part to play in the further development of the JD fascia in Iberia and beyond.
Chief executive, Régis Schultz, said: “At our capital markets event earlier in the year, we emphasised the benefit of having strong complementary concepts to support our ‘JD first’ global growth strategy.
“ISRG is a highly successful business and one of the leading players in sports retail in Iberia. By bringing the two businesses closer together, there is significant potential for accelerating growth.
“We sincerely thank the minority shareholders, Balaiko and Sonae, for their important contributions to the business during our time as partners.”
