JD Sports announces intergroup sale of Sports Unlimited Retail to ISRG

Spain-based ISRG is a subsidiary of JD Sports as the latter owns 50.02 per cent stake in it.

The deal is valued at €16.5 million, which ISRG will fund from existing cash balances and resources. The formal completion of the transaction is expected to take place on June 30, 2021.

The rationale for the transaction is that ISRG is more focused on the sporting goods sector than the core JD brand and therefore the management team of ISRG will be better placed to drive growth and higher returns in Sports Unlimited Retail in the long term, JD Sports said in a media release.

However, as the parent to ISRG, JD will continue to make strategic decisions regarding the company's future.

"We have an excellent management team at ISRG and, having successfully integrated the Sport Zone business into its operations, this is the right time for ISRG to further expand its geographical reach. By consolidating our sporting goods businesses under the ISRG umbrella, we are absolutely confident that the transfer of SUR to ISRG will bring long term development opportunities to both the team at Sports Unlimited Retail and their international brand partners,” said Peter Cowgill, executive chairman of JD Sports.

Fibre2Fashion News Desk (KD)