UK's JD Sports eyes €520 mn acquisition of Groupe Courir SAS

The business is currently majority owned by Equistone Partners Europe which acquired Courir in 2018 following the carve out from Groupe Go Sport. In accordance with French law, Courir management will now commence consultation processes with its relevant employee representative bodies prior to being able to enter into a binding sale and purchase agreement for the transaction, JD Sports Fashion and Courir said in a joint press release.

The transaction will need to be notified to the European Commission in accordance with European Union law. Completion of the acquisition is therefore conditional on receipt of merger control approval. Given the potential timings associated with the consultation and competition assessment processes, completion of the transaction would not be expected before the second half of 2023.

After deducting net debt of €195 million, the amount payable on completion, subject to certain adjustments, would be €325 million which would be funded through available cash resources. The net debt of €195 million in Courir principally constitutes existing funding lines of approximately €210 million which would be refinanced at completion.

Courir, headquartered in France, is represented by a network of 313 stores across six countries. In its home country, Courir has a significant foothold with 191 directly operated stores and an additional 66 run by affiliates. Expanding beyond its borders, Courir maintains a direct operating model in five other European nations. This includes 24 stores in Spain, 22 in Belgium, five in Portugal, three in the Netherlands, and a pair of stores in Luxembourg.

In addition, there are a further 36 stores which trade under franchise agreements as Courir in Northwest Africa, the Middle East, and French overseas territories. Further, there are two stores which trade as Naked in Denmark which is an elevated female sneaker business.

The senior management team and operational infrastructure of Courir would be retained. The plan for Courir is that the brand will retain its identity and run autonomously, separate from JD’s French operations.

For the 52-week period that ended on December 31, 2022, Courir had consolidated revenues of €609.8 million which included €100.3 million from the combination of the sale of product on a commission basis to the affiliates and other commission income from franchisees, a profit before interest and tax of €47.4 million and gross assets of €678.4 million.

The contemplated transaction constitutes a Class 2 transaction under the UK Listing Rules.

“We are delighted to announce the proposed acquisition of Courir, a business that is held in high regard in the European sportswear community. We look forward to concluding the contemplated transaction, welcoming the Courir team to the group and then working with management to fulfil Courir’s global potential. Investing in quality complementary concepts whilst furthering the growth of JD itself is a key strategic pillar for the group and one which we will continue to pursue in the future,” said Regis Schultz, CEO of JD.

Fibre2Fashion News Desk (NB)