British retailer JD Sports Fashion acquires Spain's Deporvillage

Deporvillage was established by Xavier Pladellorens and Ángel Corcuera who are currently minority shareholders. Post completion, they will retain a 20 per cent holding in the business and will continue in their roles as chief executive officer and chief purchasing officer, respectively.

Completion of the acquisition is subject to receiving antitrust clearance, JD Sports said in a press release.

Total maximum cash consideration for the acquisition of the initial 80 per cent holding in Deporvillage, subject to customary cash/debt and working capital adjustments, is €140.4 million, of which €40.4 million has been deferred and will be paid contingent on the performance of the business to December 31, 2021.

The cash consideration is being funded from the Group's cash resources and existing bank facilities. Additionally, several put and call options, to enable future exit opportunities for Pladellorens and Corcuera have also been agreed, which commence two years after closing.

After launching initially in Spain in 2010, Deporvillage expanded internationally in Italy, France, Portugal, Germany and UK. In the year to December 31, 2020, Deporvillage generated revenues of €117.8 million and delivered a profit before tax of €7.7 million. The gross assets on December 31, 2020 were €51.1 million.

The acquisition of Deporvillage, when completed, will enhance the Group's authenticity in key sports categories, significantly increase its digital capabilities in the sports equipment market and will complement the ongoing positive developments in the Group's existing Sprinter and Sport Zone fascias, the release said.

Peter Cowgill, executive chairman of JD Sports Fashion Plc, said: "Deporvillage has a strong consumer-centric approach and is the market leader in its categories in Spain with significant potential for further international development. We look forward to closing the transaction and welcoming the Deporvillage team to the Group."

Fibre2Fashion News Desk (KD)