JD Sports agrees cash offer for Footasylum acquisition
Sports fashion retailer JD Sports has announced it has reached an agreement for a cash offer to acquire footwear brand Footasylum.
Under the terms of the agreed offer, Footasylum shareholders will receive 82.5p per share in cash.
According to the announcement, the acquisition of Footasylum will complement JD Sports existing offering, with its strong reputation for lifestyle fashion as well as reaching a slightly older demographic than JD Sports.
JD Sports also expects to use its international infrastructure to grow the Footasylum brand and provide increased opportunities for its staff, management team and shareholders.
Peter Cowgill, executive chairman of JD Sports, commented: “We are pleased to make this Offer for Footasylum, which is very complementary to our existing businesses in the UK.
“We believe that there will be significant operational and strategic benefits through the combination of the very experienced and knowledgeable management team at Footasylum and our own expertise.”
The announcement follows last month’s news that JD Sports had bought an 8.3% stake in the footwear brand, causing Footasylum share prices to skyrocket.
Barry Bown, executive chairman of Footasylum, added: “The Footasylum Board has concluded that the Offer represents the best strategic option for Footasylum and its employees.”
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