JD Sports purchased the Sportswear branded shoe palace for a deal worth $325 million (£243.7 million).
In the news, JD Sports (LON:JD) stocks skyrocketed 5% as the group shares plans to expand its presence in other US states, including California, Texas, Florida and Nevada.
All transactions are cash, and retailer owner Genesis wins 100% of the stock in both Shoe Palaces.
JD Sports Chairman Peter Cowgill commented: “We are pleased to have completed the acquisition of Shoe Palace. The Shoe Palace team is ambitious, has great energy and takes pride in the consumer connections. We welcome them to the group. Masu.”
“We believe our combined fascia will provide the flexibility and expertise to meet our mutual ambitions to become the destination of major US sneakers and lifestyle apparel customers.”
The Shoe Palace was founded in 1993 by four brothers in the Melcho family. Pre-tax profit was $52 million last year. The retailer has 167 stores throughout the southern state, with strong online sales.
Analysts at Peel Hunt commented on the deal: “This is great for JD. The finish line has a weakness on the west coast and the SP is not actually connected.”
The retailer pulled out of debate earlier this month and bought Debenhams, which caused the collapse of other high street retailers, including Arcadia. In a statement to the city, JD Sports said: “JD Sports Fashion, a leading retailer of sports, fashion and outdoor brands, has confirmed that discussions with Debenhams managers about a potential acquisition of UK businesses have now ended.” Buyer not found. In the event, department stores may enter into liquidation.
JD Sports Stock (LON:JD) is 3.82% higher at 820.80 (1058GMT). Over the year, stocks have fallen from a high of 850.20.
