Sports Direct to acquire majority stakes in Baltic firms

The EAG transaction is subject to various conditions, including clearance from the Austrian competition authorities, and is expected to complete by 31 July 2013.   

Catrin Aschenwald-Eybl said:

"Eybl has a proud heritage as a family owned business and Austria's leading sporting goods retailer.  Eybl and Sports Expert are strategically positioned in the premium and value segments, and we are committed to providing our loyal customers with a compelling product offer and customer service at attractive prices. We are delighted to have secured Sports Direct as our strategic partner."

Acquisition of 60% of Sportland International Group - the largest sporting goods retailer in the Baltic region

Sports Direct announces that it has entered into an agreement to acquire a 60% equity stake in SIG, the largest sporting goods retailer in the Baltic region.

SIG operates the Sportland, Sportland Outlet, Timberland, O'Neill, Nike and Nike Outlet retail chains in Estonia, Latvia and Lithuania.  SIG, which was founded by Are Altraja and Anti Kalle, commenced business as a wholesaler in 1995 and has become the leading sporting goods retailer and distributor in the Baltics.  The SIG Group includes AS Jalajälg, which is the official wholesale distributor of Nike products in the Baltics.  For the 12 month period ending 31 December 2012, SIG generated revenue of €61.6 million, operating 80 stores with total net sales area of approximately 39,000 square meters.

The SIG transaction is subject to various conditions, including clearance from local competition authorities, and is expected to complete by 30 June 2013.

Are Altraja, co-founder of SIG, said:

"Sportland is the market leader in the Baltic region, with a premium position, an attractive store portfolio, excellent relationships with the leading third party brands and a compelling product offer.  With Sports Direct's operational expertise and financial support we will be able to expand our product offering, introduce more innovation and further enhance our market leadership in the Baltics."

Dave Forsey, Chief Executive of Sports Direct International plc, said:

"The strategic investments announced today in Austria and the Baltic region represents a continuation of our previously stated European expansion plans.  Expected benefits from these investments include increased scale for our international business, growing international awareness of our Group Brands and additional expertise in specialist product categories such as winter sports.  We are delighted to be working with strong local partners such as the Eybl Family, Are Altraja and Anti Kalle and have every confidence in their ability to grow their businesses in Austria and the Baltics."

The consideration for the EAG transaction and the SIG transaction will be funded from the Group's operating cashflows and existing bank facilities.  Following completion of these transactions, Sports Direct will continue to have significant financial flexibility and headroom within the Group's existing bank facilities.

Sports Direct