Sports retail chain JD is set to buy 80 per cent of issued shares in Spain’s Deporvillage, the retailer confirmed today, through its holding company Iberian Sports Retail Group (ISRG).
The deal will be worth around €140.4m, of which €40.4m has been deferred and will be paid if the business performs well in the months to 31 December 2021.
Catalonia-based online retailer Deporvillage raked in €117.8m in revenue last year and a profit before tax of €7.7m.
JD’s shares sank 1.26 per cent in this afternoon’s trading, taking its share price to 940.6p per share.
“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 executive chairman, Peter Cowgill, said.
“We look forward to closing the transaction and welcoming the Deporvillage team to the group.”
Once the deal is complete, Deporvillage’s management will retain a 20 per cent holding in the business, while its CEO and chief purchasing officer will keep their roles.
The Spanish online retailer has websites in Italy, France, Portugal, Germany and the UK, which would bolster the group’s sports equipment offering across Europe.