- Acquisition to expand JD’s European sports market presence
- Courir’s primary focus is on female consumers
- Deal is subject to European Commission approval
Shares in JD Sports Fashion (JD.) jumped 2.1% to 166p after the trainers-to-tracksuits retailer announced plans to acquire France-based sportswear retailer Courir for an enterprise value of €520 million.
The acquisition will expand JD Sports’ presence in the European sports footwear and apparel sector and marks the retailer’s first acquisition since new chief executive Regis Schultz set out bold expansion plans at an investor event in February.
WHAT IS COURIR?
FTSE 250-listed JD Sports is in exclusive talks to buy Courir, a key European sports footwear and apparel market player with 313 stores across six European countries, namely France, Spain, Belgium, Portugal, the Netherlands and Luxembourg, with a focus on the female consumer.
Expected to boost pre-tax profits in the year to January 2024 by 4%, the acquisition is aligned with JD Sports’ strategy of investing in complementary concepts and expanding its presence in Europe.
‘Leveraging Courir’s extensive knowledge in managing female oriented stores would significantly broaden the capabilities and global opportunities across the group’, insisted JD Sports.
After deducting net debt of €195 million, the amount payable for Courir will be €325 million, which JD Sports will fund from its available cash resources.
However, it should be noted the deal is subject to approval from the European Commission and is not expected to complete before the second half of 2023.
Investors also welcomed the news JD Sports is simplifying minority shareholdings in its subsidiary businesses across Europe in order to gain greater control over its long-term development and prioritise the successful JD brand.
WHAT DID THE CEO SAY?
Schultz said Courir is a business that is ‘held in high regard in the European sportswear community’ and looks forward to concluding the ‘contemplated transaction’ and then ‘working with management to fulfil Courir’s global potential’.
‘Investing in quality complementary concepts whilst furthering the growth of JD itself is a key strategic pillar for the group and one which we will continue to pursue in the future’, he explained.
He continued: ‘Securing greater control over the long-term development of JD and prioritising the development of the JD brand is a key pillar in our growth strategy in Europe. It will give us simpler decision making which will allow us to use our assets with more efficiency. At the same time, it will considerably simplify the group operations.’
THE SHORE CAPITAL VIEW
Shore Capital argues the Courir acquisition ‘paves the way for a stronger JD Sports in Europe, aligning with the company’s strategy of investing in complementary concepts and expanding its market presence.
‘In our view, by leveraging Courir’s strong reputation in the European sportswear community, JD Sports can unlock its global potential.’
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