Sport and fashion retailer JD Sports has announced it has acquired 15% of South Korean footwear retailer, Shoemarker Inc, and plans to buy a further 35%.
JD has acquired the initial 15% of Shoemarker, which trades as Hot-T, for a cash consideration of approximately £5.5m.
Hot-T is a sports footwear retailer with 23 stores in South Korea. It has an annual turnover of around £17.2m. JD has the option to acquire a further 35% share of the business after the finalisation of Hot-T’s accounts at the end of December.
JD, which is based in Bury, said it does intend to exercise this option, and plans to rebrand the Hot-T stores as JD.
This would result on Hot-T’s results and net assets being consolidated into JD’s accounts, although the business would continue to be operationally run by its existing management team.
Peter Cowgill, executive chairman, said: "We are delighted to be entering into this JV which gives JD the opportunity to enter a new market of over 50 million people with a proven operator. This JV will further strengthen JD's global presence."