JD Sports buys Champion
UK clothing and footwear retailer JD Sports Fashion has announced that it has exchanged contracts to acquire Republic of Ireland-based Champion Sports Holdings for a nominal amount.
JD Sports has also agreed to advance €17.1m by way of a secured loan to allow Champion’s outstanding indebtedness, excluding finance lease commitments totalling €2.5m, to be settled.
Champion was founded in 1992 as a retailer of sports apparel and footwear in the Republic of Ireland, and currently has 22 stores in the country and one store in Northern Ireland.
Prior to this acquisition, JD Sports had a limited presence in the Republic of Ireland with only eight stores. The company will look to maintain and expand both fascias. Champion’s management team, headed by CEO John Quinn, will all be retained after the acquisition.
For the year ending 31 December 2009, Champion had a turnover of €54 million, an operating loss of €1.8 million, a loss before tax of €4.9 million and gross assets of €36.2 million. The performance of the Champion business has been adversely impacted by the decline in the Irish economy and an inflexible fixed property cost base.
Peter Cowgill, executive chairman of JD Sports, said: “We are very pleased to announce that we have exchanged contracts for the acquisition of Champion, which will give us an enhanced presence in the Republic of Ireland. By drawing on the current management team’s expertise and local knowledge, we are confident that this acquisition will bring financial benefits in the future.”
