JD Sports has announced that it has completed the transfer of retail group, DTLR Villa, which is an existing 98.6% owned subsidiary based in the US, to Genesis Topco for a total consideration of $504.4m (£364m).
The group said it had always intended for DTLR to be part of the Genesis sub-group, but the requirement for “speed and certainty of execution” on the original transaction meant that it was more appropriate to initially acquire DTLR directly.
This transfer now subsequently brings all of the retailer’s businesses in the US into one subgroup which will aim to enhance the future operational collaboration between them.
However, as the parent to Genesis, JD will continue to make strategic decisions regarding the company’s future.
The deal was funded through a combination of existing cash within the group and a drawdown of debt.
In addition, by virtue of the fact that JD only owns 80% of Genesis, the company stated that it will “effectively” be disposing of a proportion of its investment in DTLR to the four Mersho Brothers who, with their 20% aggregate shareholding in Genesis, are jointly a related party of JD.