JD Sports has agreed the sale of Sports Unlimited Retail to Iberian Sports Retail Group, its 50.02 per cent subsidiary based in Spain, for €16.5m.
Sports Unlimited Retail is based in the Netherlands and operates under the Aktiesport and Perry Sport fascias.
JD Sports said the rationale for the sale is that ISRG is more focussed on the sporting goods sector than the core KD brand.
The Bury-based retail giant also suggests the ISRG management team will be “better placed” to drive growth and higher returns in SUR.
However, as the parent to ISRG, JD Sports will continue to make strategic decisions regarding the Company’s future.
A consideration of €16.5m is expected to be payable on completion which ISRG will fund from existing cash balances and resources.
The transaction is expected to take place on 30 June.
Peter Cowgill, Executive Chairman of JD Sports, said: ”We have an excellent management team at ISRG and, having successfully integrated the Sport Zone business into its operations, this is the right time for ISRG to further expand its geographical reach.
“By consolidating our sporting goods businesses under the ISRG umbrella, we are absolutely confident that the transfer of SUR to ISRG will bring long term development opportunities to both the team at SUR and their international brand partners.”
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