By Joe Hoppe
JD Sports Fashion PLC said Monday that it has entered a conditional agreement to acquire 80% of the issued shares of Deporvillage SL for up to 140.4 million euros ($167.6 million).
The sport-goods retailer said it entered into the agreement with Deporvillage on Friday. Deporvillage is a Spain-based online retailer focused on specialist sports equipment.
Completion of the deal is subject to receiving antitrust clearances, the company said.
The total maximum consideration for the acquisition is EUR140.4 million, of which EUR40.4 million has been deferred and will be paid subject to the performance of Deporvillage in 2021, JD Sports Fashion said. The consideration will be paid from existing cash resources, and a number of put and call options have been agreed on to allow future exit opportunities for management, who retain a 20% holding, the company said.
The company said that the acquisition, when complete, will enhance its authenticity in key sports categories, significantly increase its digital capabilities and complement continuing positive developments in its existing businesses. Deporvillage posted a pretax profit of EUR7.7 million in 2020, with revenue of EUR117.8 million.
“Deporvillage has a strong consumer-centric approach and is the market leader in its categories in Spain with significant potential for further international development,” JD Sports Fashion Executive Chairman Peter Cowgill said.
Write to Joe Hoppe at joseph.hoppe@wsj.com
