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Frasers Group PLC on Friday agreed a £47.5 million deal to acquire 15 brands from JD Sports Fashion PLC.
Frasers will acquire the ‘premium fashion brands’ after JD Sports conducted a ‘strategic review’. JD Sports said the divestment is ‘significantly simplifying’ its branded fashion offer.
The brands are Base Childrenswear, Choice, Clothingsites, Cricket, Giulio, Kids Cavern, Missy Empire, Nicholas Deakins, Pretty Green, Prevu Studio, Rascal Clothing, Tessuti, Scotts, Watch Shop and Topgrade Sportswear.
JD Sports said the divestment will allow it to focus on ‘opportunities across the rest of the group’, in particular international and digital expansion of the company’s core premium sports fashion product.
Frasers’ acquisitions of eight businesses took place on exchange, with the completion of the final seven expected to take place in early 2023.
The sale will result in JD Sports recognising an exceptional charge in its annual accounts for the period to 28 January 2023 of around £100 million.
Chief Executive of JD Sports Regis Schultz commented: ‘JD is rightly recognised for its laser focus on the customer and we are convinced that the most significant opportunities lie in the continued international development of the group’s global sports fashion businesses.
‘We are pleased to have agreed the sale of these attractive, but non-core, brands and I would like to express my sincere thanks to all colleagues at the businesses which form part of the transaction for their hard work and contribution to the group over the years,’ Schultz continued.
Shares in Frasers closed down 1.4% at 731.93 pence while JD Sports closed down 0.7% at 118.10 pence on Friday.
By Chris Dorrell, Alliance News reporter
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