JD Sports Fashion continues European expansion with completed acquisition of Poland’s MIG
JD Sports Fashion has completed the acquisition of a 40 per cent stake in a Polish investment group as it continues a push into European markets.
Britain’s biggest sportswear retailer said it was now the sole owner of Kraków-based Marketing Investment Group (MIG), which manages a network of stores including Timberland and Umbro.
It comes following competition approval from the European Commission in December, which ruled the transaction was compatible with the internal market under the mergers act.
JD had originally taken a 60 per cent stake in MIG in April 2021, and since then has expanded in five Central and Eastern European countries with 18 stores.
The London-listed company said the acquisition “simplified further its European operations and created the opportunity to accelerate the rollout of the JD brand in Central and Eastern Europe.”
It continues a string of acquisitions and a broader move to expand stores internationally and in Europe. JD last summer paid out €500m for the remaining shares in a Spanish company, while revealing plans to open 50 shops across the Middle East after signing a first franchise deal.
In the last financial year to January 2023, MIG generated revenue of around £270m. It currently owns and operates a total of 403 stores across 13 countries, including 23 JD stores.
JD, which has over 3,377 stores worldwide, has struggled this year with reduced customer spending in its outlets. A downgrade to its profit forecasts last week saw shares tumble more than 15 per cent.
The key Christmas trading period was also “softer” than management had anticipated, a result of “more cautious consumer spending.”