Britain’s biggest sportswear retailer JD Sports Fashion said on Friday it will pay €500.1 million ($544.9 million) to buy out the minority investors in its Iberian business as it progresses an ambitious expansion plan.
JD said it would buy the 49.98 percent of shares in Iberian Sports Retail Group (ISRG) currently held by Balaiko Firaja Invest and Sonae Holdings, giving it 100 percent ownership.
The group had said in May it was in talks over the future ownership of the unit, which trades from over 460 stores.
In February, JD said it would spend up to 3 billion pounds to open as many as 1,750 stores over five years, as CEO Regis Schultz outlined his plans for the retailer to become an athletic leisurewear “powerhouse.”
In May, JD agreed to buy France’s Groupe Courir, which trades from 313 stores and earlier this month JD said it would enter the Middle East with its first ever franchise deal.
Last month JD said there had been some softening in trade in its North American business, which would be offset by growth in demand in the UK, Europe and Asia Pacific.
Shares in JD have risen 9 percent so far this year.
By James Davey; Editor: Sarah Young
The retailer has proposed buying France’s Groupe Courir for an enterprise value of €520 million ($572 million), in what would be the British group’s first acquisition since setting out ambitious expansion plans in February.