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JD Sports Fashion PLC on Tuesday said it exercised a call option to acquire the outstanding 40% stake in Marketing Investment Group SA to become the sole owner. Completion of the acquisition is subject to customary competition approval by the European Commission. JD Sports said it expects this will occur no later than the fourth quarter of 2023. No financial details were provided by JD Sports regarding the option transaction. The Lancashire-based, FTSE 100-listed sportswear retailer originally acquired a 60% stake in Poland-based MIG in April 2021, and since then has established the JD brand in five countries across central and eastern Europe operating 18 JD stores. MIG also continues to trade profitably through Sizeer and other complementary brands, JD Sports noted, selling ‘a wide range of sports footwear, apparel and equipment from leading global brands’. JD Sports said MIG generated revenues of around £270 million in the year ended January 31. In the financial year that ended January 28, JD Sports revenue rose by 18% to £10.13 billion from £8.56 billion the year before. ‘Acquiring the remaining 40% stake in MIG allows us to accelerate the development of JD in central and eastern Europe, the strong foundations for which have been established alongside the outgoing shareholders,’ said JD Sports Chief Executive Officer Regis Schulz. ‘Increasing JD’s presence in the region through new store openings and further investment in our omnichannel capabilities is a key part of the strategic growth plan set out at our capital markets day presentation. We look forward to closing the transaction and continuing an exciting journey with the local management team.’ Shares in JD Sports were down 0.3% to 146.35 pence each in London on Tuesday afternoon. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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