JD Sports buys Spain's Deporvillage for up to €140m

International sports retailer JD Sports Fashion it had bought 80% of Spanish cycling, running and outdoor equipment seller Deporvillage for up to €140.4m.

The deal, conducted through JD Sports’ 50.02% holding company Iberian Sports Retail Group, is being funded through existing cash resources and bank facililties, with €40.4m of the purchase price deferred depending on the performance of the business to the end of the year.

Based in Manresa in Catalonia, Deporvillage has established websites in Italy, France, Portugal, Germany and the UK since being launched in 2010 by Xavier Pladellorens and Ángel Corcuera, who will retain 20% of the firm and stay in their roles as chief executive and chief purchasing officer.

A number of put and call options, to enable future exit opportunities for the duo have also been agreed, which commence two years after closing, JD Sports said.

In the year to December 31, 2020, Deporvillage generated revenues of €117.8m and delivered a pre-tax profit of €7.7m.

"The acquisition of Deporvillage will enhance the Group's authenticity in key sports categories, significantly increase its digital capabilities in the sports equipment market and will complement the ongoing positive developments in the Group's existing Sprinter and Sport Zone fascias,” JD Sports said.