LONDON: JD Sports Fashion has entered into a conditional agreement for the acquisition of 60% of Marketing Investment Group S.A. (MIG), a news release said.
Based in Krakow, Poland, and founded in 1989, MIG is currently majority owned by brothers Andrzej and Zbigniew Grząka.
The business operates 410 retail stores and associated trading websites across nine countries in Central and Eastern Europe (CEE), selling a wide range of sports fashion footwear, apparel and accessories from leading global brands primarily under the Sizeer and 50 Style fascias.
In the year ended 31 January 2020, MIG generated revenues of approximately £200 million (£stg equivalent).
Completion of the acquisition is subject to customary closing conditions, including approval by the competition authorities in Poland. JD and MIG anticipate completing this acquisition before the end of May 2021.
The size of the transaction does not meet the thresholds for mandatory notification under Listing Rule 10. However, we can confirm that put and call options have been agreed, to enable future exit opportunities for the sellers with whom we will work in partnership.
Peter Cowgill, Executive Chairman of JD Sports Fashion Plc, said: “This is an exciting acquisition for JD that will further build on the success of our international development strategy, expanding our operations into Central and Eastern Europe.
We have observed and admired the development of MIG over a number of years and we are confident that the combination of their highly experienced and knowledgeable management team, together with the expertise of the JD leadership team, will provide the Group with strong foundations from which to successfully optimise the opportunities in the region.
“We look forward to closing the transaction and welcoming the MIG team to the Group.”
JD Sports Fashion plc, more commonly known as JD Sports or JD, is a British sports-fashion retail company based in Bury, Greater Manchester, England with shops throughout the United Kingdom, Europe, the United States, Asia and Australia. www.jdplc.com