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JD buys Cecil Gee stores
Acquisition to provide ‘low risk springboard for development of a well-funded profitable premium brand fashion chain’; also acquires Sprinter in Spain
JD Sports made two acquisitions over the weekend which expand its European retail presence and increase its ‘exposure to a broader portfolio of premium brands’.
On Saturday, JD Sports took on the business and assets of eight stores trading as Cecil Gee from Moss Bros for a consideration of £1.7m.
Cecil Gee retails a number of well-known brands, such as D&G, Diesel, Converse, Armani Jeans and Superdry. The acquisition also included the Cecil Gee name and an appropriate level of stock, JD Sports said. It added that its intention is to ‘continue to trade these stores with an enhanced but similar premium branded fashion offer’.
The Cecil Gee deal was preceded by the acquisition of the trading businesses that make up the Sprinter group of companies in Spain.
JD Sports said Sprinter is one of the leading sports retailers in Spain selling footwear, apparel, accessories and equipment for a wide range of sports as well as some lifestyle casual wear including childrenswear.
There are currently 47 Sprinter stores primarily based in Andalucia and Levante, offering ‘international sports brands and successful own brands’.
JD Sports said Sprinter's experienced management team and established infrastructure provide it with the opportunity to expand its European retail presence and the distribution of its own and licensed brands.
The Sprinter deal was made through JD Sports’ recently incorporated subsidiary JD Sprinter Holdings, in which it has a 50.1 per cent stake. The other 49.9 per cent of JD Sprinter Holdings is owned equally by the Segarra family, who founded Sprinter, and the Bernad family, who have been investors in Sprinter for 15 years.
JD Sports said: “It is our intention that the Sprinter store chain will continue to grow and a joint venture is being established between JD Sprinter and JD Sports to rollout JD as a more fashion oriented retail fascia in Spain, emulating the UK format.”
JD Sports executive chairman Peter Cowgill said: “We are very pleased to announce these two acquisitions which both result from our strategy of selectively expanding our European retail presence and increasing our exposure to a broader portfolio of premium brands.
“We look forward to working with the very experienced and knowledgeable management team in Spain and bringing our own expertise to bear as we continue to develop JD Sports’ presence in Europe.
“At the same time, the acquisition of the Cecil Gee stores provides us with a low risk springboard for the development of a well-funded profitable premium brand fashion chain."
