JD Sports acquires Spanish online retailer Deporvillage for £120m

Foreign media reported that British retail giant JD Sports confirmed yesterday that on June 25 , its intermediate holding company in Spain, Iberia Sports Retail Group, reached an agreement to acquire an 80% stake in online retailer Deporvillage for 140.4 million euros (120.23 million pounds).

Based in Manresa, Catalonia, Deporvillage is an online retailer that sells cycling, running and outdoor professional sports equipment. After launching in Spain in 2010, Deporvillage has opened dedicated websites in countries such as Italy, France, Portugal, Germany and the UK.

In the year to December 31, Deporvillage generated revenues of 117.8 million euros and achieved a pre-tax profit of 7.7 million euros. Total assets at the end of the period were 51.1 million euros.

The retailer’s founders are Xavier Pladellorens and Ángel Corcuera, who are currently minority shareholders after multiple capital raisings. Once the acquisition is completed, Pladellorens and Corcuera will retain a 20% stake in Deporvillage and continue to serve as chief executive and chief purchasing officer.

JD Sports said 40.4 million euros of the 140.4 million euro purchase price had been deferred and would be paid based on the retailer’s performance this year. The cash consideration will come from JD Sports’ cash resources and existing banking facilities.

JD Sports said the acquisition of Deporvillage will strengthen the company’s authenticity in key sports categories, significantly enhance its digital capabilities in the sports equipment market and complement the ongoing development of its existing Sprinter and Sport Zone fascias.

“Deporvillage is consumer-focused and the market leader in its category in Spain, with great potential for further international growth,” said Peter Cowgill, boss of JD Sports. “We look forward to completing the transaction and welcoming the Deporvillage team to the group.”

The news comes on the heels of a big acquisition spree by JD Sports this year, with just last week news that it had acquired a majority stake in online fast-fashion retailer Missy Empire for an undisclosed sum. JD Sports has also acquired US footwear brand DTLR and Manchester menswear retailer Oi Polloi.

JD Sports also expressed an interest in Debenhams and was reportedly one of the suitors for Arcadia Group, but both bids were unsuccessful for the retail giant .

JD Sports

Acquisition

Deporvillage