JD Sports Fashion Plc’s planned acquisition of sportswear retailer Finish Line Inc. will give U.K.-based JD Sports one of the largest and fastest-growing online sportswear brands in the United States, according to Internet Retailer data.
Finish Line, which ranks No. 114 in the Internet Retailer 2017 Top 1000, is the fifth-largest of the 26 dedicated sportswear retailers in the Top 1000, as ranked by 2017 online sales.
Finish Line also was the sixth fastest-growing dedicated sportswear retailer in the Top 1000, as ranked by its web sales. Finish Line posted year-over-year online sales growth of 38.5% in 2017, reaching nearly $500 million, according to Internet Retailer data.
On Monday, JD Sports agreed to buy Finish Line in a deal valued at $558 million. The deal represents a 28% premium on Finish Line’s closing price on Friday, prior to the announcement.
The acquisition gives JD Sports a company in which its U.K.-based rival, Sports Direct International Plc—founded by U.K. billionaire Mike Ashley—has a 9.9% stake. Ashley’s company also holds an indirect interest of 32%, according to a Sports Direct statement on Feb. 20.
Finish Line has about 950 locations in the U.S., including mall stores and concessions in Macy’s (No. 6) department stores. On March 26, Finish Line announced that during its 53-week fiscal 2018 ended March 3, total net sales (online and offline) amounted to $1.84 billion, down 0.3% compared with the 52-week fiscal 2017.
The merger is subject to Finish Line and JD shareholder approval, regulatory approvals and other conditions. The companies expect to close the deal no earlier than June 2018, according to a statement from Finish Line. As JD Sports operates in the United Kingdom, the retailer doesn’t foresee any hiring or layoffs as a result of the deal.
JD Sports is No. 225 in the Internet Retailer 2017 Europe 500, and Sports Direct International is No. 45.
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