JD Sports is to buy US athletic footwear and apparel retailer DTLR for $495m as it extends its US operations.
JD Sports said that the conditional deal would enhance its presence in the north and east of the US, complementing its JD and Finish Line fascias and the recently acquired Shoe Palace.
DTLR, which is based in Baltimore, Maryland, was launched as Downtown Locker Room in 1982 and is described as having a “hyperlocal” model. The retailer has 247 branches in 19 US states. Last year it made a pre-tax profit of $1.6m.
JD expects to complete the transaction during the first quarter of this year and is funding the acquisition from existing cash resources and bank facilities.
DTLR’s management team, led by co-chief executives Glenn Gaynor and Scott Collins, will reinvest some of their proceeds back into the business, giving them a stake of about 1.4%.
JD executive chair Peter Cowgill 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. As such, we intend to retain the DTLR Villa fascia and its proposition.”
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