Fashion retailer JD Sports Fashion is set to acquire US retailer The Finish Line for $558m (£396m).
Finish Line is one of the largest retailers of athletic footwear, apparel and accessories in the US and trades from 556 branded stores across 44 US states. It is also the exclusive retailer of athletic shoes, both in-store and online for Macy’s, operating 375 branded and 188 unbranded concessions within Macy’s stores.
JD Sports is aiming to “expand its market leading elevated proposition in the most significant global market”, and says the acquisition will be funded by a new revolving credit facility for JD and a new asset backed lending facility secured against Finish Line’s inventory and receivables.
Peter Cowgill, executive chairman of JD said: “We are extremely excited to be joining up with Finish Line, a well-established US operator. The acquisition represents an excellent opportunity for JD to establish its market leading multi-brand proposition in the world’s largest athleisure market. It immediately offers a major presence in the US, a clear next step to further increase our global scale.
“Finish Line has many similarities to JD with a strong bricks and mortar offering complemented by an advanced and well-invested digital platform. We are looking forward to working with Finish Line’s experienced management team to bring best in class retail theatre to the US. Our combined extensive knowledge of the retail market and our product and marketing relationships with global brand partners will benefit our customers, in turn supporting the continued future growth of JD.”
Sam Sato, chief executive officer of Finish Line said: “Finish Line has long admired JD and their commitment to serve customers with premium brands through a unique and innovative retail experience. We are thrilled to partner with them and look forward to realising the impact we will have on the marketplace together.”
Completion is expected to take place no earlier than June 2018.