JD Sports buys 60 per cent stake in MIG
By Ramla Soni
12:49, 12 March 2021
UK sportswear retailer JD Sports Fashion has agreed to buy 60 per cent of Poland’s Marketing Investment Group (MIG).
Last month, JD said it was targeting acquisitions after raising £464m ($646.7m, €540m) in an equity issue.
MIG, majority owned by brothers Andrzej and Zbigniew Grząka, operates 410 retail stores and associated websites across nine countries in central and eastern Europe.
Krakow-based MIG, generated revenue of about £200m in its 2019-20 financial year, sells sports fashion footwear, apparel and accessories from global brands primarily through the Sizeer and 50 Style retail chains.
JD’s executive chairman, Peter Cowgill, said the group was looking for a distribution centre within the European Union to avoid having to pay post-Brexit tariffs.
A spokesman for JD said the MIG deal did not give it sufficient warehouse capacity to solve that problem, and that the company is looking for a site in either the Netherlands or Germany.
JD has been expanding its presence abroad since it set up a Malaysian joint venture in 2015.
It bought Finish Line in the US in 2018, West Coast-focused Shoe Palace in December and, in February, DTLR Villa for $495m.
Financial details of the deal with MIG were not disclosed.
Shares in JD were up 0.2 per cent at 0838 GMT, valuing the company at £8.5bn.