JD Sports makes big E. Europe move with MIG buy
Acquisition-hungry JD Sports Fashion has ramped up its global spending spree to buy a controlling stake in Poland-based peer Marketing Investment Group (MIG).
The so-far conditional agreement will see the UK sportswear giant purchase a 60% stake in Krakow-based MIG, which operates 410 stores across nine countries in Central and Eastern Europe. Terms have not been released.
MIG trades mostly under the Sizeer and 50 Style banners and also operates related e-commerce sites across its European markets selling a wide range of sports fashion footwear, apparel and accessories from leading global brands.
In the year ended 31 January 2020, MIG generated revenues of around £200 million.
Peter Cowgill, executive chairman of JD Sports Fashion, said: "This is an exciting acquisition for JD that will further build on the success of our international development strategy, expanding our operations into Central and Eastern Europe.
“We have observed and admired the development of MIG over a number of years and we are confident that the combination of their highly experienced and knowledgeable management team, together with the expertise of the JD leadership team, will provide the Group with strong foundations from which to successfully optimise the opportunities in the region”.
The latest acquisition is part of JD’s desire to invest in “future strategic opportunities”. Last month, it announced it has amassed a £464.2 million war chest after selling 6% of its shares.
The retailer has already invested in a string of international acquisitions, including Finish Line, Shoe Palace and DTLR in the US, Sprinter in Spain, Sport Zone in Portugal and Chausport in France.
However, JD did lose out in a bidding race to buy some of Arcadia’s prime fashion brands, including Topshop.
Although the new MIG deal is subject to approval by Polish competition authorities, it’s expected to be completed before the end of May.
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