JD Sports completes sale of brand to Frasers, but Rascal withdrawn from deal
JD Sports has completed the transfer of the remaining fashion brands it’s selling to Frasers Group, but with one exception.
In simultaneous announcements to the London Stock Exchange Wednesday, both said they have completed the final deals that will see Frasers Group acquire Cricket, Tessuti, Scotts, Giulio and Choice from JD Sports.
A further announcement concerning completion of a sixth brand, Topgrade Sportswear, (including Get The Label), will be made “in due course” while the formerly-agreed acquisition of the Rascal Clothing brand “will no longer proceed”, Frasers said.
JD Sports said the withdrawal of Rascal Clothing from the transaction comes as one of the founders “has exercised a pre-emption right agreed as part of the group's acquisition of Rascal on 5 February 2019. The separate divestment of Rascal was completed on 6 February”, JD Sports said, without providing further details.
The sale and transfer of Base Childrenswear, Clothingsites (including Brown Bag Clothing), Kids Cavern, Missy Empire, Nicholas Deakins, Pretty Green, Prevu Studio and Watch Shop were completed previously.
At the time of the surprise agreement, Frasers said it was acquiring the shares held by major rival JD and taking on “all of the indebtedness owing to JD by the businesses”. This added up to a value of £47.5 million and was being funded from Frasers Group's existing cash resources.
Pre-sale, JD Sports said the decision to offload the brands followed a strategic review led by the group's CEO that sees it “significantly simplifying its branded fashion offer through the divestment”.
It added that the businesses were all “non-core” and that the divestures allow JD “to focus more fully on the opportunities across the rest of the group, in particular the international and digital expansion of core premium sports fashion”.
Copyright © 2023 FashionNetwork.com All rights reserved.