- JD Sports to take over all 556 Finish Line branded retail stores
- Finish Line is also the exclusive retailer of athletic shoes for Macy’s
JD Sports has snapped up American sports shoes firm Finish Line for $558million (£396million), the company announced today.
The acquisition, which is still subject to the approval of shareholders of both companies, is expected to be completed no earlier than June this year.
Under the deal, JD Sports will take over all 556 Finish Line branded retail stores in the US and Puerto Rico and is expected to leave them trading under their own branding.
However, JD is also set to trial a number of its own branded stores in the US following the deal.
‘Transformational’: JD said the acquisition of Finish Line offered it a ‘major presence’ in the US
Finish Line, which sells sportswear, is also the exclusive retailer of athletic shoes, both in-store and online for Macy’s, the iconic US department store, where it operates another 375 branded and 188 unbranded concessions.
JD executive chairman Peter Cowgill said the deal would be ‘transformational’ for the business as it offered a ‘major presence’ in the US.
‘We are extremely excited to be joining up with Finish Line, a well-established US operator. The Acquisition represents an excellent opportunity for JD to establish its market leading multi-brand proposition in the world’s largest athleisure market,’ he added.
‘It immediately offers a major presence in the US, a clear next step to further increase our global scale.’
Shares in JD Sports rose 2.6 per cent to 365.07p in morning trading.
Finish Line, which is listed on the Nasdaq, reported revenues of $1.84billion (£1.3billion) for the year to the beginning of March.
The deal – which values Finish Line above its market cap of around $425million (£301million) – is expected to make a ‘small incremental positive contribution’ to JD’s results and earnings per share in the current financial year which runs to February 2019.