JD Sports Fashion has completed the acquisition of Sport Zone. The sports retailer has received unconditional clearance from the European Commission for the combination of its existing interests across Iberia with those of Sport Zone in Portugal, Spain and Canary Islands. The acquisition was made on January 31, fulfilling all conditions of the transaction.
“We are delighted that this transaction, which gives us a significantly enhanced presence across Iberia, has now formally completed. The financial benefit derived from Sport Zone will depend on how quickly we can deal with the store portfolio, rejuvenate the offer and realise the necessary cost reductions and synergies. We therefore do not anticipate that the acquisition will be immediately earnings enhancing,” said Peter Cowgill, executive chairman of JD.
“However, we remain firm in our belief that, utilising the skills of the very experienced and knowledgeable management team at Sport Zone and our own expertise, there are significant opportunities to improve operational efficiencies and profitability over the longer term across the enlarged Iberian business,” concluded Cowgill.