JD Sports said it entered into an agreement to acquire a 60 percent stake in Polish sports fashion business Marketing Investment Group (MIG), with 410 stores across nine countries in Central and Eastern Europe.
Based in Krakow, Poland, and founded in 1989, MIG is currently majority-owned by brothers Andrzej and Zbigniew Grząka. The business sells a wide range of sports fashion footwear, apparel and accessories from leading global brands primarily under the Sizeer and 50 Style banners. In the year ended January 31, 2020, MIG generated revenues of approximately £200 million.
Completion of the acquisition is subject to customary closing conditions, including approval by the competition authorities in Poland. JD and MIG anticipate completing this acquisition before the end of May 2021.
Peter Cowgill, executive chairman of JD Sports, said, “This is an exciting acquisition for JD that will further build on the success of our international development strategy, expanding our operations into Central and Eastern Europe. We have observed and admired the development of MIG over a number of years and we are confident that the combination of their highly experienced and knowledgeable management team, together with the expertise of the JD leadership team, will provide the group with strong foundations from which to successfully optimize the opportunities in the region. We look forward to closing the transaction and welcoming the MIG team to the Group.”
The acquisition is the latest for JD Sports Fashion, which has recently struck two deals to expand in North America.
In December, JD bought Shoe Palace for $325 million in cash to expand its business on the U.S. West Coast. On February 1, it said it had entered into a conditional agreement for the acquisition of DTLR Villa LLC, an athletic footwear and streetwear retailer based in Baltimore, MD, for a total cash consideration of $495 million. The U.K.’s largest sneaker chain marked its entry in the U.S. with the acquisition of Finish Line in 2018xx
Photo courtesy MIG