Sports Direct has acquired 51 percent of Austrian chain EAG and 60
percent of Sportland International Group, which operates in the Baltic
region.

The purchases will be funded from existing cash and bank facilities and represent a continuation of the group’s previously stated European expansion plans, said Chief Executive Dave Forsey.

Sports Direct has bought a 51 percent equity share in Austrian family owned retailer Sports Ebyl & Sports Experts (EAG) for €10.5 million plus an agreed €30m investment in the business. During the next five years, the Sports Direct will have the right to acquire the remaining shares in EAG for €15.5 million, while the current owners also have the right to offload their remaining shares to Sports Direct for €5 million.

EAG has 55 stores in Austria, three in Germany and owns 18
properties including stores and warehouses, with a combined gross assets
of €166 million. In the year to August 31st 2012 the retailer turned over
€323.8m but lost €20.6 million.

In the Baltics, the group acquired 60 percent of the equity of Sportland International, the largest sporting goods retailer in the region, for an undisclosed sum. Sportland runs the Sportland, Timberland, O’Neill and Nike retail chains in Estonia, Latvia and Lithuania, as well as being the official wholesale distributor of Nike products in the Baltics. Last year, Sportland International took sales of €61.6 millon from its 80 stores.

“The strategic
investments in Austria and the Baltic region represent a continuation of
our previously stated European expansion plans,” said Dave Forsey, chief executive of Sports Direct. “Expected benefits from these investments include increased scale for our international business, growing international awareness of our group brands and additional expertise in specialist product categories such as winter sports. We are delighted to be working with strong local partners such as the Eybl Family, Are Altraja and Anti Kalle and have every confidence in their ability to grow their businesses in Austria and the Baltics.”

Sports
Direct already has 127 stores in Europe, including 100 that it wholly
owns and 27 in joint ventures. The company’s biggest market is Belgium,
where it has 46 stores.