JD SPORTS TO BUY FRENCH COURIR

JD Sports is to acquire France’s Courir in a deal worth €520m. The Greater Manchester-headquartered group is to pay €325 for the company, funded through existing cash resources, and take on debt of €195m.

Courir is currently majority owned by Equistone Partners Europe which acquired it in 2018 and has 313 stores across six countries.

It has a further 36 stores which trade under franchise agreements as Courir in North West Africa, Middle East and French overseas territories. There are two stores which trade as Naked in Denmark. In 2022, Courir had consolidated revenues of €609.8m and a pre-tax profit of €47.4m.

Chief executive Régis Schultz said: “We said at our recent capital markets event that this was the start of a new, distinct chapter in the growth story of JD. The exciting developments that we are announcing today reflect the strategic priorities that we highlighted on the day.

We are delighted to announce the proposed acquisition of Courir, a business that is held in high regard in the European sportswear community. We look forward to concluding the contemplated transaction, welcoming the Courir team to the group and then working with management to fulfil Courir’s global potential.”

He added:”Investing in quality complementary concepts whilst furthering the growth of JD itself is a key strategic pillar for the group and one which we will continue to pursue in the future.

Securing greater control over the long-term development of JD and prioritising the development of the JD brand is a key pillar in our growth strategy in Europe. It will give us simpler decision making which will allow us to use our assets with more efficiency.

At the same time, it will considerably simplify the group operations. We thank our partners for their contribution to the development of JD across Europe and for their constructive engagement.”

JD Sports has also confirmed it has now completed the acquisition of the remaining 20% of JD Sports Fashion Germany GmbH.

The Courir acquisition comes after Mike Ashley’s retail empire completed the acquisition of the final brands from JD Sports in a wider deal worth £50 million.

In February, JD Sports also set out its vision to become the world’s “leading global sports-fashion powerhouse”.

The group drew up a five-year plan that includes double digit revenue growth, market share in “key regions” and operating margin.

JD Sports is also targeting capital expenditure of between £500m and £600m every year with 50% to 60% focused on store expansion in “underpenetrated markets” with 250 to 350 new JD stores per year.

The group is to announce its full-year results for the 12 months to January 28, 2023, on May 17.