JD Sports share price rises as it announces Go Outdoors Topco acquisition

 
Caitlin Morrison
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Hiking Across The Karwendel Mountain Range
JD Sports has expanded its outdoor pursuits offering with the deal (Source: Getty)

Shares in JD Sports were up three per cent mid-morning after the retailer announced it had bought outdoor pursuits chain Go Outdoors.

JD Sports paid £112.3m cash consideration, and has assumed net debt of around £16m as part of the transaction, which it had been pursuing for months.

The retailer said the deal will complement its "existing significant interest in the outdoor market" through its Blacks, Millets, Ultimate Outdoors and Tiso businesses.

JD Sports also noted that as the majority of Go Outdoors' 58 UK stores are located at "out of town retail parks", there is minimal crossover with the group's existing outdoor shops.

"Go Outdoors is a great addition to our existing outdoor business," said JD Sports chairman Peter Cowgill.

"The minimal overlap in store locations and their out of town, one stop retailer approach complements the work we have done on the high street with Blacks and Millets and further strengthens our offering in the outdoor sector. I am excited by the future prospects this holds for the JD Group."

Go Outdoors was established in 1998 by Paul Caplan and John Graham and was backed by YFM Equity Partners and then 3i Group. In the 53 weeks to 31 January 2016, Go Outdoors posted revenue of £202.2m and pre-tax profit of £4.9m. Caplan and Graham will leave the business after the deal completes.

Earlier this year, JD Sports warned that June's Brexit vote and the subsequent fall in the value of sterling could cause headwinds next year.

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