The Finish Line Acquired by UK Brand for $558M
Athletic retailer The Finish Line said yesterday that it has agreed to be purchased by U.K.-based retailer JD Sports Fashion for $558 million. JD is the leading European retailer of sports, fashion and outdoor brands. The merger agreement is subject to Finish Line and JD shareholder approval, the receipt of all required regulatory approvals, and the satisfaction of other closing conditions, according to the Finish Line. The expected timeline to close on this agreement is no earlier than June 2018. Upon closing of the agreement, the Finish Line executive team will continue their involvement with the business.
“Finish Line has long admired JD and its commitment to serve customers with premium brands through a unique and innovative retail experience,” said Sam Sato, Chief Executive Officer of Finish Line. “We are thrilled to partner with them and look forward to realizing the impact we will have on the marketplace together.”
Total Retail's Take: This is a good move by The Finish Line. The transaction provides an excellent strategic fit for Finish Line and JD. Finish Line, for example, moves into a stronger position to compete as part of a global enterprise that leads in the industry. JD gains a significant physical and online retail presence with direct access in the U.S., which it has long identified as a highly attractive growth opportunity. In short, together they create a leading global, premium, multichannel retailer of sports, fashion and outdoor brands that embraces the latest online and in-store digital technology.