JD teams up with Euro retailer to create €450m Iberian operation
JD Sports Fashion Plc is set to combine its Iberian operation with one of the biggest sports retailers in Spain and Portugal.
The firm this morning (September 14) confirmed an exchanging of conditional contracts to combine its business on the peninsula, JD Sprinter Holdings 2010 S.L., with Sport Zone, a subsidiary of European retail group Sonae.
The deal will create a business with an estimated turnover of over €450m (£405m) and a network of 204 Spanish stores and 107 Portuguese.
Working together, JD and Sport Zone will become Iberia’s second largest sports retailer.
Peter Cowgill, executive chairman of JD, said: “Sport Zone is very complementary to our existing businesses in Iberia.
“We believe there are significant opportunities for synergies to be created to improve operational efficiencies and profitability through the combination of the very experienced and knowledgeable management team at Sport Zone and our own expertise as we continue to strengthen JD’s presence in Europe.”
The deal follows reports of a record half-year profit for the Bury-headquartered retailer, which achieved year-on-year growth of 33% in the 26 weeks to July 29 2017.