British retailer JD Sports Fashion has announced that it has exercised its rights under a call option and entered into an outstanding 40 per cent minority stake of Marketing Investment Group (MIG) from conditional agreement to acquire the its minority shareholders and will become the 100 per cent sole owner of MIG.

JD originally acquired a 60 per cent stake in Poland-based MIG in April 2021, and since then has established the JD fascia in five countries across Central and Eastern Europe operating 18 JD stores. MIG also continues to trade profitably through Sizeer and other complementary fascias, selling a wide range of sports footwear, apparel and equipment from leading global brands. In the year ended January 31, 2023, MIG generated revenues of approximately £270 million, the company said in a press release.

Completion of the acquisition is subject to customary competition approval by the European Commission and anticipated no later than the fourth quarter of 2023.

"Acquiring the remaining 40 per cent stake in MIG allows us to accelerate the development of JD in Central and Eastern Europe, the strong foundations for which have been established alongside the outgoing shareholders. Increasing JD's presence in the region through new store openings and further investment in our omni-channel capabilities is a key part of the strategic growth plan set out at our Capital Markets Day presentation. The complementary Sizeer brand provides a strong platform for the MIG business and the JD brand has evidenced strong initial traction with the consumer, which we will continue to build upon. We look forward to closing the transaction and continuing an exciting journey with the local management team,” Régis Schultz, CEO of JD, said.

Fibre2Fashion News Desk (RR)

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