JD Sports snaps up Footasylum in £90.1m cash offer
JD Sports Fashion is acquiring Footasylum in a £90.1 million recommended cash offer.
The offer at 82.5p per share represents a premium of approximately 77.4% to the closing price of 46.5p per Footasylum share on Friday.
It is 184.5% higher than the closing price of 29p on 15 February prior to JD’s first acquisition of an 18.7% stake in Footasylum.
JD, which includes Scottish outdoor leisure business Tiso as well as Blacks, has 2,400 stores in 18 countries and said Footasylum targets a slightly older consumer to its existing offering.
It described the acquisition as a “compelling opportunity” for Footasylum’s employees, management team, shareholders and other stakeholders, with Footasylum able to leverage JD’s greater scale with regard to sourcing, its well-established international infrastructure and its other commercial operations.
It expects the Enlarged Group to be able to take advantage of business opportunities which are not readily available to either JD or Footasylum on a standalone basis.
Peter Cowgill, executive chairman of JD, said: “We are pleased to make this offer for Footasylum, which is very complementary to our existing businesses in the UK. We believe that there will be significant operational and strategic benefits through the combination of the very experienced and knowledgeable management team at Footasylum and our own expertise.”
Barry Bown, executive chairman of Footasylum, said: “The Footasylum board has concluded that the offer represents the best strategic option for Footasylum and its employees. It believes the offer fairly reflects Footasylum’s current market position and prospects on a standalone basis and, as such, that Footasylum Shareholders should be given the opportunity to realise value from the offer.”