JD Sports continues acquisition spree with conditional deal to acquire Spain's Deporvillage
JD Sports is continuing with its recent acquisition spree announcing that its intermediate holding company, Iberian Sports Retail Group, has entered into a conditional agreement to acquire 80% of the issued shares in Deporvillage in a deal worth €140.4m.
Based in Manresa in Catalonia, Deporvillage is an online only retailer focused on the sale of specialist sports equipment principally for cycling, running and outdoor.
Founded in 2010, it has expanded internationally with country specific websites launched subsequently in Italy (2013), France (2013), Portugal (2014), Germany (2018) and UK (2018). In the year to 31 December 2020, it generated revenues of €117.8 million and delivered a profit before tax of €7.7m.
The company was founded by Xavier Pladellorens and Ángel Corcuera, who after a number of funding rounds, are now minority shareholders. Post completion of the deal they will retain a 20% holding and will be continuing in their roles as CEO and Chief Purchasing Officer respectively.
Total maximum cash consideration for the acquisition of the initial 80% holding in Deporvillage is €140.4m, of which €40.4m has been deferred and will be paid contingent on the performance of the business to 31 December 2021.
JD Sports said the deal would enhance its authenticity in key sports categories, significantly increase its digital capabilities in the sports equipment market and will complement the "ongoing positive developments" at its Sprinter and Sport Zone fascias.
Chairman and CEO Peter Cowgill 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."
In February of this year, JD Sports raised £464.2m to fund further acquisitions having just acquired US sports retailer DTLR. In March it went on to buy MIG, a Polish sports, fashion and outdoor apparel group, and snapped up cult Manchester fashion independent Oi Polloi last month.