Bury-based JD Sports Fashion is entering the U.S. market with the acquisition of Finish Line Inc for $558m (£394m).
The retailer’s move into the largest sportswear market is its boldest yet, increasing JD Sports’ importance to international brands, particularly Nike and Adidas.
NASDAQ-listed Finish Line is a retailer of athletic footwear, apparel and accessories in the U.S., with 556 stores across 44 states and Puerto Rico, as well as online.
JD Sports has already expanded into France, Spain and South Korea in recent years.
Executive chairman Peter Cowgill said: “This is a landmark day for JD and will be transformational for the business. It immediately offers a major presence in the U.S., a clear next step to further increase our global scale.”
Peel Hunt analyst Jonathan Pritchard, said: “The deal looks a sensibly-priced entry point into a market that JD must embrace to be considered a genuinely global player.”
Finish Line 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.
Its revenue in the year to March 3 2018 was $1.84bn.
Pritchard said the deal will enhance JD’s relationships with the big manufacturers, especially Nike, which represents 71% of Finish Line’s sales.
JD Sports forecasts the acquisition will make a positive contribution to its results and earnings per share in the year to Feb. 2 2019.
The deal, which requires the approval of both companies’ shareholders, is expected to complete no earlier than June.
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement