(qlmbusinessnews.com via telegraph.co.uk – – Mon, 26 Mar 2018) London, Uk – –
Britain’s JD Sports plans to grab a slice of the American market with a “transformational” $558m (£400m) deal to buy The Finish Line, an exclusive sports shoe supplier to the Macy’s department store chain.
Finish Line has 556 standalone stores as well as operating a similar number of Macy’s concessions.
Bury-based JD is offering $13.50 for each share in the Nasdaq-listed company, at a 28pc premium to their closing price on Friday.
The retailer, which also owns outdoors equipment chains Blacks, Millets and Go Outdoors, said the takeover would make “a small incremental positive contribution” to its financial results for the year to February 2019.
The deal will need to be approved by both companies' shareholders and is not expected to complete before June.
Peter Cowgill, JD's executive chairman, said: “This is a landmark day for JD and will be transformational for the business.”
JD has shrugged off the gloom that has afflicted the high street of late, announcing a profit upgrade after sales in stores open more than one year grew 3pc over Christmas.
In January it won approval from regulators for its takeover of Sports Zone, which has more than 300 sportswear stores in Spain and Portugal.
Shares in JD Sports were up 3.3pc to 368p in early trade.
By Jack Torrance
