Last checked at 12 Mar 2021 07:00
12 March 2021
JD Sports Fashion Plc
Conditional Agreement for the Acquisition of Marketing Investment Group S.A. in Poland
JD Sports Fashion Plc ('JD' or the 'Group'), one of the world's leading retailers of sports, fashion and outdoor brands, announces that on 11 March 2021, it entered into a conditional agreement for the acquisition of 60% of Marketing Investment Group S.A. ('MIG' or 'Company').
Based in Krakow, Poland, and founded in 1989, MIG 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 ('CEE'), selling a wide range of sports fashion footwear, apparel and accessories from leading global brands primarily under the Sizeer and 50 Style fascias. In the year ended 31 January 2020, MIG generated revenues of approximately £200 million (£stg equivalent).
Completion of the acquisition is subject to customary closing conditions, including approval by the competition authorities in Poland. JD and MIG anticipate completing this acquisition before the end of May 2021.
The size of the transaction does not meet the thresholds for mandatory notification under Listing Rule 10. However, we can confirm that put and call options have been agreed, to enable future exit opportunities for the sellers with whom we will work in partnership.1
Peter Cowgill, Executive Chairman of JD Sports Fashion Plc, said:
"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.
"We look forward to closing the transaction and welcoming the MIG team to the Group."
Enquiries:
JD Sports Fashion Plc Tel: 0161 767 1000
Peter Cowgill, Executive Chairman
Neil Greenhalgh, Chief Financial Officer
Jennifer Iveson, Investor Relations
MHP Communications Tel: 0203 128 8788
Andrew Jaques
Giles Robinson
Charles Hirst
Catherine Chapman
[1] To the extent that the exercise of any of these put and call options are not at the sole discretion of JD, the maximum consideration payable has been capped below 4.99% of JD's market value, less any consideration already paid.