JD Sports continues acquisition spree with purchase of MIG in Poland

JD Sports has continued its recent acquisition spree with the purchase of a 60% stake Poland-based Marketing Investment Group (MIG).

The Krakow sports, fashion and outdoor apparel group was founded in 1989 and 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 under the Sizeer and 50 Style fascias. In the year to 31 January 2020, it generated revenues of approximately £200 million.

JD Sports executive chairman Peter Cowgill said of the deal, which is due to complete in May: "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."

JD said the size of the transaction did not meet the necessarily threshold for a mandatory full take-over of the business but put and call options have been agreed, to enable future exit opportunities for the sellers with whom JD will work in partnership.

The acquisition follows on from February's acquisition of US-based sports retailer DTLR in a $495m deal and December's purchase of US footwear retailer Shoe Palace for $325m. It also acquired Leicester-based menswear independent Wellgosh in January.

In partnership with US group Authentic Brands Group, JD was also in the mix to acquire the Topshop and Topman brands from the failed Arcadia empire but lost out on that deal to e-commerce giant ASOS.

Last month the group raised £464.2m via a share placing to fund future acquisitions.