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Published
Feb 1, 2018
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JD Sports completes Sports Zone acquisition

Published
Feb 1, 2018

British sportswear company JD Sports has completed a deal that will see it become the second largest sports retailer in Spain and Portugal.



The company announced in September plans to combine its Iberian business with Sports Zone, a sports clothing and footwear retailer owned by Sonae.

The transaction was cleared by the European Commission earlier this month, and JD Sports completed the acquisition of Sports Zone on Wednesday 31 January.

"We are delighted that this transaction, which gives us a significantly enhanced presence across Iberia, has now formally completed,” commented Peter Cowgill, Executive Chairman of JD, warning that profits in the near future will not immediately reflect the expansion.

“The financial benefit derived from Sport Zone will depend on how quickly we can deal with the store portfolio, rejuvenate the offer and realise the necessary cost reductions and synergies. We therefore do not anticipate that the acquisition will be immediately earnings enhancing. However, we remain firm in our belief that, utilising the skills of the very experienced and knowledgeable management team at Sport Zone and our own expertise, there are significant opportunities to improve operational efficiencies and profitability over the longer term across the enlarged Iberian business."

The group’s expanded Iberian business has now a combined turnover of over €450 million, and 240 stores in Spain as well as 107 in Portugal.

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