JD SPORTS is to move further into the US after agreeing a $495 million takeover of Baltimore sportswear brand DTLR Villa.
Shares in the UK retailer jumped after it told investors it is buying the business from current owners BRS & Co and Goode Capital.
It is the second major acquisition in the US in as many months, following its takeover of west coast trainer retailer Shoe Palace.
JD said the latest deal will help it to grow in the north and east of the US, where DTLR currently operates 247 stores across 19 states.
DTLR was founded in 1982 as Downtown Locker Room, before re-branding and then expanding through a merger with Sneaker Villa in 2017.
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The acquisition of DTLR, “with its differentiated consumer proposition, will enhance the group’s presence in the north and east of the United States complementing not only our existing JD and Finish Line fascias but also the recent acquisition of Shoe Palace which is based on the west coast,” it said.
JD said it will retain Glenn Gaynor and Scott Collins as co-chief executives of the US company, which reported earnings of $45.6m last year.
After recognising a charge for depreciation and amortisation of $24.7m and net funding costs of $19.3m, DTLR delivered a profit before tax of $1.6m.
The gross assets in the DTLR balance sheet at February 1 were $293.7m.
Peter Cowgill, executive chairman of JD Sports, said: “This is another exciting milestone in the group’s development in the United States.
“Like Shoe Palace, DTLR pride themselves on the deep connection they have with their consumers and the active role they play in the communities that they serve.”
He also said: “The acquisition of DTLR will enhance our presence in the north and east of the United States and will be another important step in the group’s evolution.”
Shares in the London-listed firm closed at 799.6p, up 7.04%, or 52.6p.
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