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JD buys Ireland's Champion
JD Sports buys Champion Sports to grow Irish base; will retain Champion Sports brand and management team
JD Sports has agreed to buy 100 per cent of the issued share capital in Irish sports retailer Champion Sports Holdings in order to grow its presence in Ireland.
Champion Sports was founded in 1992 and is one of the leading retailers of sports apparel and footwear in Ireland.
Champion Sports has 22 stores in town centres and shopping centres across Ireland, as well as one store in Northern Ireland. Prior to the acquisition, JD Sports had eight stores in Ireland.
However, for the year ended December 31, 2009 Champion Sports recorded a turnover of €54m, an operating loss of €1.8m, a loss before tax of €4.9m and gross assets of €36.2m.
JD Sports said the performance of the Champion Sports business has been adversely impacted in recent years by the decline in the Irish economy and an inflexible fixed property cost base.
JD Sports has agreed to buy the full share allowance for a nominal amount, and will advance €17.1m by way of a secured loan to allow Champion Sports to pay off its debts, excluding finance lease commitments totalling €2.5m.
“The JD Board expects that the Champion Sports acquisition will be earnings enhancing in future years after investment in the store portfolio and the realisation of operational synergies,” JD Sports said in an announcement to the London Stock Exchange.
Champion Sports’ existing management team will be retained in the takeover, as will the Champion Sports name on the high street, due to its ‘established reputation, differentiated product mix and loyal customer base’.
JD Sports executive chairman Peter Cowgill said: "Champion will give us an enhanced presence in 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."
