JD Sports set to acquire Champion Sports for €20m

CHAMPION Sports — the well-known Irish sports fashion retailer — is set to be acquired by its British rival, JD Sports, in a deal industry sources are valuing at around €20 million.

The deal, which will see JD Sports up its presence in the Republic from eight shops to 22, is reliant on Competition Authority approval and the British company then being satisfied with the terms on which any approval is granted.

However, JD’s executive chairman — Peter Cowgill — has already expressed his pleasure at the conditional acquisition, adding that his company’s enhanced presence in the Republic “will bring financial benefits in thefuture”.

The JD Sports board expects the acquisition to be earnings enhancing “in future years”, following further investment in the store portfolio and “the realisation of operational synergies”.

John Quinn, Champion Sports chief executive, said the move would give Champion the chance to broaden its consumer offering and boost employment across Ireland. Mr Quinn and the rest of the existing Champion Sports management team will be retained by JD after completion of the takeover. Both JD and Champion brands will remain on the Irish high street, due to their slightly different product offering.

Most recent accounts available from Champion show it had a turnover of €54m and gross assets of €36.2m for 2009.

The Bury-headquartered JD Sports is partially listed on the London Stock Exchange (the business is 57% owned by the Pentland Group, which owns popular brands Speedo, Mitre and Ellesse) and has more than 500 stores.

The group said it saw a 2.5% year-on-year rise in sales over the recent Christmas trading period and expects its full-year pre-tax profit — for the 12 months to the end of January — to exceed initial expectations.