JD Sports to acquire US based The Finish Line
JD Sports is to acquire US athletic footwear brand The Finish Line in a deal worth £396 million.
The Finish Line trades from 556 retail stores across 44 US states and Puerto Rico. It is also the exclusive retailer of athletic shoes, both in-store and online for US department store Macy's.
Peter Cowgill, executive chairman of JD Sports, said: "We are extremely excited to be joining up with The Finish Line, a well established US operator. The acquisition represents an excellent opportunity for JD to establish its market leading multi-brand proposition in the world's largest athleisure market. It immediately offers a major presence in the US, a clear next step to further increase our global scale.”
In the year to 25 February 2017, The Finish Line had revenues of $1.84 billion with a pre-tax profit of $54 million. The company employs around 3,700 full time and around 9,300 part-time staff. JD Sports said The Finish Line's executive team will continue their involvement with the business following the acquisition.
The purchase will be funded by way of a new revolving credit facility for JD Sports and a new asset backed lending facility secured against The Finish Line's inventory and receivables.
With the deal being subject to the approval of both JD and The Finish Line shareholders, completion is expected to take place no earlier than June 2018.
Cowgill added: ““Finish Line has many similarities to JD with a strong bricks and mortar offering complemented by an advanced and well-invested digital platform, This is a landmark day for JD and will be transformational for the business."
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