// JD Sports snaps up 80% stake in Deporvillage for £120.23m
// Deporvillage is a Spanish online-only retailer focussing on the sale of specialist sports equipment
// Deporvillage generated revenues of €117.8m and delivered a profit before tax of €7.7m last year
JD Sports has acquired a majority stake in Spanish online sports equipment retailer Deporvillage in a deal worth around £120 million.
The UK retail giant confirmed today that, on June 25, its 50.02 per cent intermediate holding company in Spain, Iberian Sports Retail Group, struck an agreement to acquire 80 per cent of Deporvillage in a €140.4 million (£120.23 million) deal.
Based in Manresa in Catalonia, Deporvillage is an online-only retailer focussing on the sale of specialist sports equipment principally for cycling, running and outdoor.
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After launching initially in Spain in 2010, Deporvillage has expanded internationally with country specific websites in Italy, France, Portugal, Germany and the UK.
In the year to December 31, Deporvillage generated revenues of €117.8 million and delivered a profit before tax of €7.7 million.
The gross assets at the end of that period were €51.1 million.
The retailer was established by Xavier Pladellorens and Ángel Corcuera who, after a number of fund raising exercises, are currently minority shareholders.
Once the acquisition deal is completed, Pladellorens and Corcuera will retain a 20 per cent holding in Deporvillage and will continue in their roles as chief executive and chief purchasing officer, respectively.
Completion of the acquisition is subject to receiving antitrust clearance.
JD Sports said €40.4 million of the €140.4 million acquisition price has been deferred and will be paid depending on the performance of the retailer this year.
The cash consideration is being funded from JD Sports’ cash resources and existing bank facilities.
In addition, a number of put and call options to enable future exit opportunities for Pladellorens and Corcuera have also been agreed, which commence two years after closing.
JD Sports said its acquisition of Deporvillage would enhance the firm’s authenticity in key sports categories, significantly increase its digital capabilities in the sports equipment market, and complement the ongoing developments in its existing Sprinter and Sport Zone fascias.
“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 boss Peter Cowgill said.
“We look forward to closing the transaction and welcoming the Deporvillage team to the group.”
The news comes on the back of an acquisition spree this year for JD Sports.
Just last week, news emerged that JD Sports had acquired a majority stake in online fast fashion retailer Missy Empire for an undisclosed sum.
JD Sports has also bought US footwear label DTLR and Manchester-based menswear retailer Oi Polloi.
JD Sports had also expressed interest in Debenhams and was reportedly one of the suitors for Arcadia Group – but neither bids proved successful for the retail giant.