JD Sports has completed its acquisition of Finish Line, effectively giving the British retailer a strong entry into the US retail market.
The deal was worth $558 million, or roughly around £396 million, and sees JD Sports take ownership of Finish Line’s 600 stores in the US.
“This marks a momentous step in JD’s global expansion and represents an exciting opportunity to bring our market leading, multi-brand retail proposition to the world’s largest athleisure market, both online and in stores,” JD Sports chief executive Peter Cowgill said.
“Our team will now collaborate with the experienced Finish Line management team and the key global brands to bring best in class retail theatre and multi-channel consumer experience to the US.”
Finish Line employs 3700 full-time staff and 9300 part-time workers and there have been no changes to the executive team currently leading the business.
Meanwhile, JD Sports previously said the acquisition would “make a small incremental positive contribution” to its trading results in its fiscal year to February 2.
According to Marc Cooper, chief executive officer of PJ Solomon, the investment banking firm that represented Finish Line, the addition of JD’s global heft and size will help drive many components of Finish Line’s business.
“For JD Sports, this was a brilliant move,” he told WWD.
“It gives them an immediate and significant footprint in a very large US market.”
He added that JD Sports planned to invest heavily in Finish Line, “spending considerable amounts upgrading stores not already upgraded”.
He also hinted JD Sports could open a few stores as well.