JJB.L Regulatory News (JJB)

26 Feb 2008 07:01

Powerleague Group plc26 February 2008 For immediate release: 26th February 2008 POWERLEAGUE FIVES LTD ("Powerleague" or "the Company") Acquisition of Soccer Domes from JJB Sports plc ("JJB") for £17.4 m Powerleague, the UK's leading 5-a-side football centre operator, announces thatit has agreed to acquire JJB's entire estate of UK Soccer Domes for a totalmaximum consideration of £17.4 million to be satisfied in cash from existingresources and increased banking facilities. The acquisition, which comprisesfive purpose-built indoor soccer centres with a total of 69 pitches, furtherenhances Powerleague's unique 5-a-side proposition and provides our customerswith even more choice in terms of playing experience and venues. The Directorsestimate that turnover attributable to these sites for the year ended 31 January2007 was £6.0 million. The newly acquired centres in Manchester, Wigan, Derby, Blackburn and NorthShields are highly complementary to Powerleague's existing portfolio andpipeline of sites. The centre in Manchester, which is located close to the highprofile Trafford Centre, is the largest 5-a-side football centre in the worldwith 19 indoor pitches and 3 outdoor pitches. Immediately following completion,Powerleague will operate from 43 locations across the UK. The Directors of Powerleague believe that significant efficiencies andsynergistic benefits will be achieved as a result of this acquisition. The acquisition Powerleague is acquiring the Soccer Dome business from JJB, including theleasehold for each centre. These include bars, coffee shops and function rooms. The Soccer Dome estate comprises of 5 predominantly indoor soccer centres: * Manchester (Old Trafford) - 19 indoor pitches, 3 outdoor pitches This centre is located beside the Trafford Centre just off the M60, and is the largest 5-a-side football centre in the world. * Wigan - 14 pitches (8 indoor, 6 outdoor). This centre is located by the JJB Stadium which houses Wigan Athletic Football Club and Wigan Rugby League Club. * Derby - 11 pitches (8 indoor, 3 outdoor). This centre is located adjacent to the Derby County FC grounds, close to the A52. * Blackburn - 11 indoor pitches. This centre is located on the outskirts of Blackburn just off the M65. * North Shields - 11 indoor pitches. This centre is located in North Shields close to the Newcastle International Ferry Terminal. The Soccer Dome centres vary in size from 11 to 22 pitches and will add afurther 69 pitches to Powerleague's existing 386 pitches. All pitches use thelatest next generation playing surfaces that replicate the playing conditions ofreal grass. Sponsorship Agreement In addition to acquiring JJB's five Soccer Dome centres in the UK, Powerleagueis pleased to announce that it has secured a 5-year sponsorship agreement withJJB, whereby JJB will become the official Sports Retailer for Powerleague'scentres, allowing them access to over 120,000 active grass- roots footballerswho play on a weekly basis. Claude Littner, Executive Chairman of Powerleague, commented: "This acquisitionrepresents a step-change in the unique 5-a-side football proposition offered byPowerleague. We now offer our customers the opportunity of experiencing thethrill of indoor as well as traditional outdoor play on latest generationplaying surfaces at the highest quality purpose-built facilities. We believe the acquisition of these premier indoor facilities reinforcesPowerleague's position as the clear and established market-leader in thesmall-sided game and will be tremendously well received by customers,colleagues, shareholders and sponsors." Sean Tracey, Powerleague Chief Executive, commented: "We are very excited at theopportunities the acquisition of the JJB Soccer Domes will bring to the company.The addition of JJB as our official Sports Retailer through a 5-year Sponsorshipagreement will bring added value to both companies and will provide Powerleaguewith potential opportunities to open outdoor centres at suitable sites alongsideJJB Health Clubs as they roll out." The Powerleague Directors would also like to put on record their thanks to theBank Of Scotland Corporate Team, who once again have supported the Managementteam in this acquisition. Chris Ronnie Chief Executive of JJB commented. "The sale of our Soccer Domesbusiness to Powerleague is representative of our strategy of focusing onre-energising our retail offering whilst at the same time looking foropportunities to increase the number, and profitability, of our combined healthclubs and retail stores. "I have every confidence that Powerleague, the Premier operator of 5-a-sidecentres in the UK, will successfully integrate the Soccer Domes into its ownbusiness. Many joint opportunities exist for both companies to work together andwe look forward to developing these with Powerleague's management." For further information please visit www.powerleague.co.uk or contact: Claude Littner, Chairman Lulu BridgesSean Tracey, Chief Executive John WestPowerleague Tavistock CommunicationsTel: 0141 887 7758 Tel: 020 7920 3150 Stephen KeysCenkos Securities plc020 7397 8926 This information is provided by RNS The company news service from the London Stock Exchange