JD Sports takes over rival
By Sarah Wood | 18th March 2019
In news that won't surprise anyone, JD Sports has agreed to buy smaller rival, Footasylum, in a £90m deal.
Just last month, JD Sports, which has a store in Gloucester, revealed that it was building up a stake in Footasylum , but denied that it was intending to make an offer.
The deal comes weeks after Footasylum warned that profits were being squeezed, as it slashed prices in order to increase sales amid difficult trading conditions. The deal values Footasylum at about half the level of when it floated on the stock market a year and a half ago, as reported by Sky.
JD Sports said that once the deal was complete it would carry out a strategic review of the business, but that it planned to maintain the company's separate identity.
The retailer said Footasylum is complementary to its existing business in the UK, targeting a slightly older consumer than its own target market.
JD and Footasylum have a lot of history. David Makin, who launched Footasylum in 2005, and John Wardle, who later became its executive chairman, were co-founders of JD Sports. Barry Bown, its current executive chairman, served as chief executive of JD Sports for 14 years.
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