Retail acquisition news : UK sportswear retailer JD Sports Fashion has made a conditional acquisition agreement to buy US sportswear retailer Finish Line for about $558 million in an all-cash deal, in a move to foray into the largest sportswear market in the world.
Under the terms of the JD Sports acquisition of Finish Line, the UK sportswear retailer will pay $13.50 per each share of the US sportswear retailer.
JD Sports acquisition of Finish Line will enable the former to bring its multi-channel retail proposition to the US market.
Finish Line offers multi-branded athletic footwear, apparel and accessories in the United States.
The US sportswear retailer operates 556 branded retail stores across 44 states and Puerto Rico apart from having a multi-channel offering. Its revenue was $1.84 billion in the year to 3 March, 2018.
Commenting on JD Sports acquisition of Finish Line, Peter Cowgill – Executive Chairman of JD Sports, said: “Finish Line has many similarities to JD with a strong bricks and mortar offering complemented by an advanced and well-invested digital platform.
“We are looking forward to working with Finish Line’s experienced management team to bring best in class retail theatre to the US. Our combined extensive knowledge of the retail market and our product and marketing relationships with global brand partners will benefit our customers, in turn supporting the continued future growth of JD.”
Finish Line also happens to be the exclusive seller of athletic shoes, both in-store and online to US department store chain Macy’s. The US sportswear retailer operates 375 branded and 188 unbranded concessions inside Macy’s stores.
It has a workforce of about 3,700 full-time and close to 9,300 part-time staff.
Sam Sato – CEO of Finish Line, commenting on JD Sports acquisition of Finish Line, said: “Finish Line has long admired JD and their commitment to serve customers with premium brands through a unique and innovative retail experience. We are thrilled to partner with them and look forward to realizing the impact we will have on the marketplace together.”
JD Sports acquisition of Finish Line is expected to be completed by June 2018 and will be subject to approval of shareholders of both the sportswear retailers.
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