JD Sports agrees to acquire Deporvillage
JD Sports has entered into a conditional agreement to acquire an 80% stake in Spanish online sports equipment retailer Deporvillage.
Founded by Xavier Pladellorens and Ángel Corcuerain in 2010, Deporvillage specialises in the cycling, running and outdoor categories. After launching in Spain, it now has country specific websites in Italy, France, Portugal, Germany and the UK. In the year to 31 December 2020, the company generated revenues of €117.8 million and and a pre-tax profit of €7.7 million.
Currently minority shareholders, Pladellorens and Corcuera will retain a 20% holding in the business post completion and will continue in their respective roles of chief executive and chief purchasing officer.
JD Sports has agreed to pay €140.4 million for the business, although €40.4 million has been deferred and will be paid contingent on performance in the period to 31 December 2021. In addition, a number of put and call options have been agreed to enable future exit opportunities for Pladellorens and Corcuera. These will commence two years after closing.
JD Sports said the acquisition will enhance its authenticity in key sports categories and increase its digital capabilities in the sports equipment market.
Peter Cowgill, executive chairman of JD Sports, said: “Deporvillage has a strong consumer-centric approach and is the market leader in its categories in Spain with significant potential for further international development. We look forward to closing the transaction and welcoming the Deporvillage team to the group.”
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