JD Sports takes full control of Iberian Sports Retail Group in €500m deal

JD Sports has acquired the remaining 49.98% of shares it did not already hold in Iberian Sports Retail Group for €500 million (£427 million) as its global expansion continues.

The British sports retail giant revealed in May that it was in talks about taking full control of the ISRG business, which operates more than 460 stores across Europe including JD Sports stores in Iberia, Sprinter in Spain, Sport Zone in Portugal and Aktiesport and Perry Sport in the Netherlands. ISRG also has a 98% holding in the Deporvillage online business and a 50.1% holding in the Bodytone fitness equipment business. 

JD has acquired the shares from Balaiko Firaja Invest, S.L. and Sonae Holdings, S.A. in a move that has been funded from its existing cash reserves.

In the year to January 2023 ISRG reported sales of €1.24 billion (£1.06 billion) and profit before tax of €96.6 million (£82.5 million). In a statement to shareholders KD said it saw strong growth potential for the business and the expansion of the JD Sports brand across Europe.

"We believe that there are opportunities to continue to develop Sprinter and Sport Zone and that the ISRG team in Iberia also have an important part to play in the further development of the JD fascia in Iberia and beyond," the company said.

The news comes just days after JD Sports announced its expansion into the Middle East by signing a new partnership with Dubai-based company GMG. As part of that deal it plans to open around 50 stores under the JD brand over the next five years, focusing on locations in the United Arab Emirates, Saudi Arabia, Kuwait and Egypt.

JD has been doubling down on its core market of sports fashion, and the expansion of the flagship JD Sports fascia, since the arrival of new CEO Régis Schultz last year. Schultz announced a rapid growth strategy at the group's capital markets event in February saying the company plans to open between 200 and 300 stores globally each year over the next five years.

At the end of last year, the group divested its premium fashion businesses, which included brands such as Giulio, Tessuti and Cricket, selling them to rival Frasers Group.