// JD Sports to acquire Footasylum for £90 million

// JD Sports agreed to pay £82.5p per share for Footasylum

// The deal is expected to finalise in April or May

JD Sports has announced it will acquire Footasylum in a deal worth up to £90 million.

The sportswear chain agreed to pay £82.5p per share for the footwear retailer, marking a 77.4 per cent increase on Footasylum’s closing price of £46.5p last week.

The deal is expected to be completed in April or May.

This follows the news of JD Sports announcing it had no intention of making an offer to Footasylum despite buying an 8.3 per stake – later raised to over 18 per cent – in the business.

JD Sports’ main shareholder Pentland also has a 2.6 per cent holding in Footasylum.

“The Footasylum board has concluded that the offer represents the best strategic option for Footasylum and its employees,” Footasylum executive chairman Barry Bown said.

“It believes the offer fairly reflects Footasylum’s current market position and prospects on a standalone basis and, as such, that Footasylum shareholders should be given the opportunity to realise value from the offer.”

JD executive chairman Peter Cowgill said: “We believe that there will be significant operational and strategic benefits through the combination of the very experienced and knowledgeable management team at Footasylum and our own expertise.”

Click here to sign up to Retail Gazette‘s free daily email newsletter