JD Sports Fashion: ISRG Buys Addl 18% Stake In Deporvillage In Spain For €19.8 Mln

(RTTNews) - Retailer JD Sports Fashion Plc (JD.L, JDSPY) announced Friday that its existing 50.02 percent intermediate holding company in Spain, Iberian Sports Retail Group SL or ISRG, acquired an additional 18 percent stake in Deporvillage SL for 19.8 million euros in cash.

The stake was acquired from Deporvillage co-founders Xavier Pladellorens and Àngel Corcuera.

In June 2021, JD Sports had announced that ISRG entered into a conditional agreement to acquire 80 percent of stake in Deporvillage.

Manresa in Catalonia, Spain -based Deporvillage is an online sports retailer specialising in cycling, running, outdoor, and other sports categories. It also has presence in Italy, Portugal and France.

In2020, Deporvillage generated revenues of 117.8 million euros and delivered a profit before tax of 7.7 million euros.

Following the latest deal, ISRG own 98 percent of Deporvillage, while co-founders retain a 2 percent interest. As part of the deal, the co-founders will step away from the management of the business following a transition period.

The parties have also entered into put and call options over the co-founders' remaining 2 percent interest in Deporvillage. The consideration payable for this remaining 2 percent holding has been capped.

In London, JD Sports Fashion shares were trading at 97.06 pence, up 3.26 percent.