JD Sports sold Footasylum to German private equity firm Aurelius Group for an enterprise value of about £37.5 million ($38 million), less than the £86 million ($102.9 million) price it paid for the chain in 2019.
JD Sports was forced to sell the business after the UK’s competition watchdog blocked the takeover.
The Competition and Markets Authority (CMA) ruled last year that the merger could lead to less choice and a “worse deal” for customers.
JD Sports and Footasylum were fined almost £4.7 million earlier this year by the CMA for sharing commercially sensitive information during its investigation. The CEO of JD Sports, Peter Cowgill, resigned in May after the fine.
JD Sports had already taken a £55.6 million write-down in 2021 after it realized the value of Footasylum was less than it had thought, and £7.4m in costs in 2020 directly related to the transaction.
JD has around 3,400 stores across 29 countries, including 700 in the UK and Ireland, selling brands including Nike, Adidas and Puma.
Footasylum, which has more than 65 stores across the UK, sells similar brands. The sale is anticipated to complete in the coming weeks with no conditionality.
Logo courtesy Footasylum
