Finish Line, one of the largest retailers of premium multi-branded athletic footwear, apparel and accessories in the US, will receive US$13.50 per share in cash.
JD Sports expects the acquisition will make a small incremental positive contribution to its results and earnings per share in the year to 2 Februar 2019.
It said the acquisition offers the company “the opportunity to expand its market leading elevated proposition into the most significant global market”.
“It immediately gains the benefit of a significant physical and online retail presence and increases the importance of the Company to its major international brand partners,” the group added.
Finish Line trades from 556 of its own branded retail stores across 44 US states and Puerto Rico. It also operates 375 branded and 188 unbranded concessions within Macy’s stores as the department store chain’s exclusive retailer of athletic shoes, both in store and online.
Ashley, the founder and chief executive Sports Direct, had threatened to “finish off” his main rival JD Sports at a meeting with representatives from the City in 2011.
However, JD Sports has flourished by targeting younger, more style-conscious customers while Sports Direct has been hit by a series of scandals over working practices and lower sales at UK stores amid a tough retail market.
In late morning trading, shares in JD Sports were 2.8% higher at 345.7p.
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