JD Sports has acquired its US counterpart Finish Line in a $558 million (£396 million) deal as part of its international expansion efforts.
The British sports fashion retailer said it has agreed to acquire the American clothing, footwear and accessories business – which operates 556 brands and trades across 44 US states – for $13.50 per share.
JD Sports will also acquire Finish Line’s 375 branded and 188 unbranded concessions within US department store giant Macy’s.
The acquisition is now pending approval from shareholders of both companies.
Should it go ahead, the deal would mark JD Sports’ official debut in the US.
The deal is also expected to be complete in June at the earliest and Finish Line’s current executive team will continue to lead the business.
Finish Line, which is listed on the NASDAQ stock exchange, employs 3700 full-time staff and 9300 part-time workers.
JD Sports said the acquisition would “make a small incremental positive contribution” to its trading results in its fiscal year to February 2.
Executive chairman Peter Cowgill added that that the would be “transformational”.
“The acquisition represents an excellent opportunity for JD to establish its market-leading multi-brand proposition in the world’s largest athleisure market,” he said.
“It immediately offers a major presence in the US, a clear next step to further increase our global scale.
“Finish Line has many similarities to JD with a strong bricks-and-mortar offering complemented by an advanced and well-invested digital platform.
“We are looking forward to working with Finish Line’s experienced management team to bring best-in-class retail theatre to the US.”
Finish Line boss Sam Sato also welcomed JD Sports’ takeover bid.
“Finish Line has long admired JD and their commitment to serve customers with premium brands through a unique and innovative retail experience,” he said.
“We are thrilled to partner with them and look forward to realising the impact we will have on the marketplace together.”
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