JD Sports expands European base with Sprinter and Cecil Gee deals

Monday, Jun 20 2011 by
2
JD Sports expands European base with Sprinter and Cecil Gee deals

JD Sports Fashion (LON:JD.), the FTSE 250 sports and fashion retailer, has spent €20.0 million (£17.6 million) on a deal that gives it a 51.1% stake in the Sprinter group of companies in Spain. Sprinter is one of the country’s leading sports retailers and sells footwear, apparel, accessories and equipment for a wide range of sports as well as some lifestyle casual wear including childrenswear. The company is based in Elche in south-east Spain and currently has 47 stores primarily based in Andalucia and Levante.

The deal was structured by creating a newly incorporated subsidiary called JD Sprinter. The remaining 49.9% of the shares in JD Sprinter are owned equally between the Segarra family, who founded Sprinter, and the Bernad family, who have been investors in Sprinter for 15 years. JD invested its €20.0m into JD Sprinter through a subscription for new shares while the Segarra and Bernad families put the Sprinter companies into JD Sprinter as consideration for their new shares.

JD said that Sprinter’s experienced management team and established infrastructure provides it with the opportunity to expand its European retail presence and the distribution of its own and licensed brands. It said it intended to grow that Sprinter store chain and that a joint venture was being established between JD Sprinter and JD (in which JD will have an effective shareholding of 65%) to rollout JD as a more fashion oriented retail fascia in Spain, emulating the UK format.

For the year ended 31 December 2009, the four Sprinter businesses had a consolidated turnover of €80.0 million (after adjusting for intercompany turnover between the four businesses), an operating profit of €2.1 million and a profit before tax of €2.1 million.

Separately, over the weekend JD acquired the business and assets of eight stores trading as Cecil Gee along with the Cecil Gee name and an appropriate level of stock from Moss Bros (LON:MOSB) for a total net consideration of £1.7 million. JD said it would continue to trade the stores with an enhanced but similar premium branded fashion offer. In response to today's deal news, shares in JD Sports rose by 0.5p to 870.5p.

Peter Cowgill, JD’s executive chairman, said: “We are very pleased to announce these two acquisitions which both result from our strategy of selectively expanding our European retail presence and increasing…

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JD Sports Fashion Plc is a multichannel retailer of sports fashion and outdoor brands. The Company's segments are Sports Fashion and Outdoor. The Company's sports fashion brands include JD, Size?, Chausport, Sprinter, Getthelabel.com, Kooga, Kukri Sports, Source Lab, Scotts, Tessuti, Cloggs, JD Gyms and Nicholas Deakins. Its outdoor brands include Blacks, Millets, Tiso and Ultimate Outdoors. Chausport operates throughout France retailing international footwear brands, such as Nike, adidas and Le Coq Sportif together with brands specific to the local market, such as Redskins. Sprinter is a sports retailer in Spain selling footwear, apparel, accessories and equipment for a range of sports, as well as lifestyle casual wear and childrenswear. Kooga designs and sources rugby apparel and equipment. Cloggs is an online retailer of branded footwear. Blacks is a retailer of specialist outdoor apparel, footwear and equipment. It has over 900 stores across a range of retail fascias. more »

LSE Price
616.4p
Change
-2.1%
Mkt Cap (£m)
6,126
P/E (fwd)
18.9
Yield (fwd)
0.3

Moss Bros Group PLC is engaged in retailing and hiring formal wear for men. The Company operates through Moss Bros branded mainstream stores. The Company's segments include Retail and Hire. The Company offers various types of suits, skirts, jackets, trousers, coats, casualwear, ties, shoes and accessories. The Company offers clothing and accessories for various occasions, including weddings, prom, race day suit, tuxedo and black tie, interview attire and graduation. The Company also trades through Savoy Taylors Guild fascia. It has approximately 100 Moss Bros and Savoy Taylors Guild branded stores and over 20 Moss Bros outlet stores, which trade Moss Bros own brands and selected third-party brands, including Hugo Boss, Canali, Ted Baker, DKNY and French Connection. The Company has approximately 120 Moss Bros Hire outlets, which are contained within Moss Bros Retail and Savoy Taylors Guild Stores. The Company's sub brands consist of Moss London, Moss 1851 and Moss Esq. more »

LSE Price
21.25p
Change
 
Mkt Cap (£m)
21.9
P/E (fwd)
n/a
Yield (fwd)
n/a



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