JD Sports Fashion Plc on Tuesday said it has entered into a conditional agreement to become the sole owner of Marketing Investment Group S.A. (MIG), a Poland-based company that operates retail chains such as Sizeer and runs distribution for different brands.
Under the agreement, JD said it will acquire the outstanding 40 percent minority stake of the company from its minority shareholders. JD acquired a 60 percent stake in MIG in April 2021 and has since expanded to five countries in Central and Eastern Europe and 18 stores.
MIG’s revenues in 2022 were approximately 270 million pounds.
JD CEO Régis Schultz said in a statement that this acquisition will allow the company to speed up its development in Central and Eastern Europe.
“Increasing JD’s presence in the region through new store openings and further investment in our omnichannel capabilities is a key part of the strategic growth plan set out at our Capital Markets Day presentation,” Schultz said. “The complementary Sizeer brand provides a strong platform for the MIG business and the JD brand has evidenced strong initial traction with the consumer, which we will continue to build upon.”
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The deal is subject to approval by the European Commission and is expected to close no later than Q4 of 2023.
The move marks JD’s latest investment in its international growth. In July, the UK-based sports retailer inked a new deal with Dubai-based brand management company GMG on its first-ever franchise agreement to allow JD to expand into the Middle East. The deal was a meaningful contributor to JD’s plans to open between 200 and 300 new stores each year over the next five years.
In May, JD Sports released its final results for the full fiscal year 2023. According to the retailer, it recorded pretax profit for the year of 991.4 million pounds ($1.26 billion), a new record for the company.
According to the company, it’s moving full steam ahead on its “JD First” and global growth strategy. JD said that it has opened a net additional 32 JD stores in the first four months of the year and is on track to open more than 150 stores for the JD fascia over the course of the year in line with targets.
