Leading UK-based activewear clothing retailer JD Sports has revealed that it is set to acquire foot wear retailer The Finish Line in a deal worth $558mn, marking the company’s entrance into the US market.
JD Sports has seen strong performance of late, having overtaken Sports Direct as the leading UK sportwear retailer in terms of market value. As a result, the company is readily looking to expand its portfolio, as is demonstrated with its recent movements into the French, Spanish and South Korean markets, and now the world’s largest sportswear market.
“We are extremely excited to be joining up with Finish Line, a well-established US operator,” said Peter Cowgill, Executive Chairman of JD. “The Acquisition represents an excellent opportunity for JD to establish its market leading multi-brand proposition in the world's largest athleisure market. It immediately offers a major presence in the US, a clear next step to further increase our global scale.”
JD will pay a price of $13.50 per share for the entirety of The Finish Line in an all cash deal. In turn, JD will become responsible for the US retailer’s 556 branded retail stores across 4 US states and in Puerto Rico, whilst also taking on the company’s ecommerce business.
Further, JD will also assume the role of being the exclusive retailer of Macy’s athletic shoes, a position that is currently held by The Finish Line.
“Finish Line has long admired JD and their commitment to serve customers with premium brands through a unique and innovative retail experience,” said Sam Sato, Chief Executive Officer of Finish Line said. “We are thrilled to partner with them and look forward to realizing the impact we will have on the marketplace together.”