After receiving the go-ahead from the European Commission, UK retailer JD Sports Fashion has completed its acquisition of Sport Zone, which is based in Portugal, Spain, and the Canary Islands.
The deal, which was first announced in September of last year, was formally completed yesterday (31 January), following unconditional clearance from the EU Commission.
Peter Cowgill, executive chairman of JD, said the transaction gives the retailer a “significantly enhanced” presence across Iberia.
He adds: “The financial benefit derived from Sport Zone will depend on how quickly we can deal with the store portfolio, rejuvenate the offer and realise the necessary cost reductions and synergies. We therefore do not anticipate that the acquisition will be immediately earnings enhancing.
“However, we remain firm in our belief that, utilising the skills of the very experienced and knowledgeable management team at Sport Zone and our own expertise, there are significant opportunities to improve operational efficiencies and profitability over the longer term across the enlarged Iberian business.”
Earlier this month, JD upped its full-year guidance on the back of positive second-half sales and continued momentum in its international business.
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