Business
Conditional Agreement for the Acquisition of DTLR
Conditional Agreement for the Acquisition of DTLR.
About this update from Jd Sports Fashion Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5061N\n JD Sports Fashion Plc\n 01 February 2021\n \n \n \n 1 February 2021\n \n \n JD Sports Fashion Plc\n \n \n Conditional Agreement for the Acquisition of DTLR in the US\n \n JD Sports Fashion Plc ('JD' or the 'Group'), a leading retailer of sports, fashion and outdoor brands, announces that on 31 January 2021, it entered into a conditional agreement for the acquisition of 100% of DTLR Villa LLC ('DTLR' or 'Company').\n \n Based in Baltimore, Maryland, and currently majority owned by BRS & Co. and Goode Capital, DTLR was established in 1982 and is a hyperlocal athletic footwear and apparel streetwear retailer. Originally named Downtown Locker Room, the company later re-branded as DTLR and, in 2017, merged with Sneaker Villa Inc (previously based in Philadelphia). DTLR currently operates from 247 stores across 19 states, principally in the north and east of the United States.\n \n \n \n \n Completion of the acquisition is subject to customary closing conditions, including expiration or termination of the applicable waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act (HSR Act). JD and DTLR anticipate completing this acquisition during Q1 2021.\n \n Total cash consideration for the acquisition is $495 million, subject to customary working capital and other adjustments at completion, of which approximately $100 million will be used to repay existing indebtedness of the Company. This cash consideration is being funded from the Group's cash resources and existing bank facilities. The DTLR Management Team ('Management'), headed up by Glenn Gaynor and Scott Collins, who will be continuing in their roles as Co-CEOs, will also be reinvesting a portion of their proceeds back into DTLR in exchange for a new minority stake of approximately 1.4%. Put and call options, to enable future exit opportunities for the Management, have also been agreed and become exercisable after a minimum period of three years.1\n \n The acquisition of DTLR, with its differentiated consumer proposition, will enhance the Group's presence in the north and east of the United States complementing not only our existing JD and Finish Line fascias but also the recent acquisition of Shoe Palace which is based on the West Coast.\n \n In the 52 weeks ended 1 February...