JD Sports confirms plans to take full control of Iberian business ISRG

UK retail giant JD Sports Fashion is to take full ownership of Iberian Sports Retail Group (ISRG), acquiring the remaining 49.98% shares it doesn’t already own for €500.1 million (£427.47 million).

The transaction, to be paid in cash and funded by the group’s own resources, completes the buy of ISRG that began in May. The remainder of the business is currently held by Balaiko Firaja Invest (19.99%), Sonae Holdings (29.99%) and other minority parties.

It’s a big move and continues to advance JD’s global ambitions. ISRG currently operates more than 460 stores across Europe including JD in Iberia, Sprinter in Spain, Sport Zone in Portugal and Aktiesport and Perry Sport in the Netherlands. ISRG also has a 98% holding in the Deporvillage online business and a 50.1% holding in the Bodytone fitness equipment business.

For the financial year ended 31 January, ISRG’s consolidated revenues rose to €1,239 million from €1,037 million in the previous year as consolidated pre-tax profit also grew to €96.6 million from €73.2 million. Consolidated gross assets amounted to €767.7 million against €659 million in the previous 12 months.

“We believe that there are opportunities to continue to develop Sprinter and Sport Zone and that the ISRG team in Iberia also have an important part to play in the further development of the JD fascia in Iberia and beyond”, JD said in a statement.

Régis Schultz, CEO of the Group, added: “ISRG is a highly successful business and one of the leading players in sports retail in Iberia. By bringing the two businesses closer together, there is significant potential for accelerating growth.”