Sports Direct International PLC, the U.K.s largest sporting-goods retailer, raised £929 million ($1.82 bn) in an initial public offering after owner Mike Ashley sold a 43% stake in the business.
Mr. Ashley, 42, founded Sports Direct in 1982 as a teenager with a single store and has taken the Sports World discount banner from third place in the U.K. sporting goods market to top spot in the space of three years, according to the Associated Press. It now has 408 Sports World locations in the U.K. along with outlets in Ireland, Belgium, the Netherlands and Slovenia; and operates the websites sports-world.com and sportsdirect.com. The stores feature a “bargain basement” strategy offering discounts from 50% to 70%. Brands reportedly include Nike, Adidas, Reebok, Umbro, Puma, Diadora, Fila, Dunlop and Slazenger.
Sports Direct, which is based in Dunstable, England, also operates the more upscale Lillywhites chain, including the legendary five-floor shop on the edge of Piccadilly Circus; as well as the Original Shoe Company. In total, it has 465 stores. Sports Direct also holds a portfolio of international sports and leisure brands, including Slazenger, Dunlop, Lonsdale, Donnay and Kangol. In fiscal 2006, Sports Direct's earnings before interest, tax, depreciation and amortization were £145 million ($285 mm) on revenue of £1.19 billion ($2.3 mm), the company has said.
The proceeds received by Mr. Ashley could rise to £1.1 billion if he exercises an option to sell more shares. Ashley, who holds the position of executive deputy chairman, also owns stakes in John David Group, JJB Sports, and recently bought a 29.7% stake in Blacks Leisure.
David Richardson, a former finance director of pubs operator and hotelier Whitbread Plc, is non-executive chairman, with Dave Forsey serving as CEO.
