JD Sports to buy US sportswear retailer DTLR Villa
JD Sports is to acquire US sportswear retailer DTLR Villa in a deal worth $495 million.
Established in 1982, the retailer initially traded as Downtown Locker Room but later rebranded as DTLR. Having merged with Sneaker Villa in 2017, it currently operates from 247 stores across 19 US states. The retailer is currently majority owned by BRS & Co. and Goode Capital.
JD Sports said the acqusition will enable it to expand its presence in the north and east of the US and will complement its existing JD and Finish Line fascias in the country as well as its recently acquired Shoe Palace brand.
DTLR co-chief executives Glenn Gaynor and Scott Collins will be continuing in their roles following the acquisition. In addition, the management team will be reinvesting a portion of their proceeds back into DTLR in exchange for a new minority stake of approximately 1.4%.
Peter Cowgill, executive chairman of JD Sports Fashion, said: “This is another exciting milestone in the group’s development in the United States. Like Shoe Palace, DTLR pride themselves on the deep connection they have with their consumers and the active role they play in the communities that they serve. As such, we intend to retain the DTLR Villa fascia and its proposition. The acquisition of DTLR will enhance our presence in the north and east of the United States and will be another important step in the group’s evolution.”
In the 52 weeks to 1 February 2020, DTLR delivered an EBITDA of $45.6 million. After recognising a charge for depreciation and amortisation of $24.7 million and net funding costs of $19.3 million, DTLR’s pre-tax profit came in at $1.6 million.
Completion of the acquisition is subject to customary closing conditions.
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