JD Sports Fashion Plc, the parent of the JD, Finish Line, DTLR, and Shoe Palace retail brands in the U.S. and others worldwide, exercised its right under a call option and entered into a conditional agreement to acquire the outstanding 40 percent minority stake of Marketing Investment Group SA (MIG) from its minority shareholders to become the 100 percent sole owner of MIG.
“Acquiring the remaining 40 percent 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 Régis Schultz, CEO of JD Sports Fashion Plc. “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. The complementary Sizeer brand provides a strong platform for the MIG business, and the JD brand has evidenced strong initial traction with the consumer, which we will continue to build upon.”
JD originally acquired a 60 percent stake in Poland-based MIG in April 2021 and, since that time, has established the JD brand in five countries across Central and Eastern Europe, operating 18 JD stores. MIG trades profitably through Sizeer and other complementary nameplates, selling a wide range of sports footwear, apparel and equipment from global brands.
In the year ended January 31, 2023, MIG generated approximately £270 million in revenue.
Completion of the acquisition is subject to customary approval by the European Commission and anticipated no later than the fourth quarter of 2023.
“We look forward to closing the transaction and continuing an exciting journey with the local management team,” Schultz said.
