Conditional Acquisition of Champion (0551A)
January 25 2011 - 7:39AM
UK Regulatory
TIDMJD.
RNS Number : 0551A
JD Sports Fashion Plc
25 January 2011
JD Sports Fashion Plc
25 January 2011
Conditional Acquisition of Champion Sports Holdings
JD Sports Fashion Plc ('JD'), the leading retailer of sport and
athletic inspired fashion apparel and footwear, announces that on
24 January 2011 it exchanged contracts for the acquisition of 100%
of the entire issued share capital of Champion Sports Holdings
('Champion') for a nominal amount. In addition, JD has agreed to
advance EUR17.1m by way of a secured loan to allow Champion's
outstanding indebtedness, excluding finance lease commitments
totalling EUR2.5m, to be settled. In accordance with Irish Law, the
transaction will be notified to the Competition Authority in the
Republic of Ireland. Completion of the acquisition is therefore
conditional on JD being satisfied with the terms of the approval of
the transaction issued by the Competition Authority.
Champion was founded in 1992 and is one of the leading retailers
of sports apparel and footwear in the Republic of Ireland with 22
stores in premium locations in town centres and shopping centres.
With its base near Dublin, Champion is well represented throughout
the Republic of Ireland. In addition, Champion has one store in
Northern Ireland. Prior to this acquisition, JD has a limited
presence in the Republic of Ireland with only eight stores.
Champion's established reputation, differentiated product mix
and loyal customer base means that we intend to maintain and expand
both fascias. Further, Champion's experienced management team,
headed by CEO John Quinn, who will all be retained after the
acquisition, will bring an enhanced local knowledge to the
operations of the JD stores in the Republic of Ireland.
For the year ended 31 December 2009, Champion had a turnover of
EUR54.0m an operating loss of EUR1.8m, a loss before tax of EUR4.9m
and gross assets of EUR36.2m. The performance of the Champion
business has been adversely impacted in recent years by the decline
in the Irish economy and an inflexible fixed property cost base
which we intend to continue to address. However, the JD Board
expects that the Champion acquisition will be earnings enhancing in
future years after investment in the store portfolio and the
realisation of operational synergies.
Peter Cowgill, Executive Chairman of JD, said:
"We are very pleased to announce that we have exchanged
contracts for the acquisition of Champion, which will give us an
enhanced presence in the Republic of Ireland. By drawing on the
current management team's expertise and local knowledge, we are
confident that this acquisition will bring financial benefits in
the future."
Enquiries:
JD Sports Fashion Plc Tel: 0161 767 1000
Peter Cowgill, Executive Chairman
Barry Bown, Chief Executive
Brian Small, Finance Director
MHP Communications Tel: 0203 128 8100
Andrew Jaques
Barnaby Fry
Ian Payne
This information is provided by RNS
The company news service from the London Stock Exchange
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