JD Sports passes rugby brand Canterbury to Pentland

23rd Aug 2012 07:33

JD Sports Fashion is to seek shareholder approval to sell the rugby equipment brand Canterbury to Pentland, a significant shareholder in the sports fashion-wear firm.Pentland, which has a 57.47% stake in JD, is to pay £22.7m for the Canterbury brand, subject to the approval of other JD shareholders. Pentland, which owns numerous sports brands such as Mitre and Speedo, does not have any representation on the JD board. As part of the transaction JD Sports has committed to buy Pentland's clothing brand known as ONETrueSaxon for £50,000. ONETrueSaxon offers jackets, knitwear, polo shirts, denim and footwear and has been described as "anti-fashion". Canterbury is a major brand in the rugby world and has recently won the right to supply kit to all England rugby teams from juniors to the senior 15. JD Sports acquired the brand from the Canterbury Europe's administrators in August 2009.In the 52 weeks to January 28th, Canterbury made a consolidated operating profit of £0.4m and a loss before taxation of £1.1m. An aggregate cash payment of £22,698,521 will be paid by Pentland to JD Sports, comprising £1 for the entire issued share capital of Canterbury and £22,698,520 for the firm's debt.Peter Cowgill, Executive Chairman of JD, said: "Having reviewed the options for Canterbury, we are pleased to have agreed its sale to Pentland on terms which are attractive for JD and provide Pentland with the opportunity to further build and develop the Canterbury brand. Acquiring the ONETrueSaxon brand will allow us to leverage our in-house expertise and offer new products through our core retail fascias."BS