JD Sports buys Champion

25th Jan 2011 13:43

Sports fashion retailer JD Sports Fashion has exchanged contracts to acquire Irish rival Champion Sports Holdings. JD Sports is advancing €17.1m to Champion in the form of a secured loan. This will be used to pay off Champion's debt, excluding €2.5m of finance lease commitments. JD Sports says that Champion has a strong reputation and a different product mix so it does not intend to change the name above the shops. The Champion management is also being retained. Champion has 22 stores in the Republic of Ireland and one in Northern Ireland. JD Sports has eight stores in the Republic of Ireland. Champion lost €4.9m on revenues of €54m in the year to December 2009. Champion has been hit by the poor Irish economy but JD Sports is confident that the acquisition will be earnings enhancing in the future. Completion is dependent on competition clearance.