United Kingdom. – JD Sports continues its expansion in the US with the purchase of 409 million DLTR villas
Madrid, 1 (Europa Press)
JD Sports specializing in footwear and sportswear, the British retail chain has continued its expansion in the United States, with the purchase of another local chain, DLTR Villa, for a total of $ 495 million (409 million euros) in cash, according to the report According this Monday.
In mid-December, JD Sports already closed an agreement to buy US shoe retail chain Shoe Palace for $ 681 million (563.5 million euros), thus adding 167 stores to its company.
The final amount of the DLTR Villa purchase is subject to certain conditions and adjustments, although JD Sports has indicated that $ 100 million (82.8 million euros) will be used to pay the company’s debt.
Following the acquisition, Glenn Gaynor and Scott Collins will continue to serve as the company’s co-CEOs, as well as bringing back a portion of proceeds from the sale to DLTR for a 1.4 percent minority stake. They have also agreed on options for buying and selling shares within a maximum period of three years.
For the fiscal year ended February 1, 2020, DLTR posted gross operating income of $ 45.6 million (€ 37.7 million). After depreciation and amortization as well as financing costs, net profit was $ 1.6 million (1.32 million euros).
The company is located in Baltimore (Maryland, United States). It was founded in 1982 under the name Downtown Locker Room, although it was later changed to DLTR. In 2017 it merged with Sneaker Villa as DLTR Villa. Currently, it owns 247 stores, mostly in the northern and eastern United States.
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