Based in Krakow, MIG operates 410 retail stores and associated trading websites across nine countries in Central and Eastern Europe which sell a wide range of sports fashion footwear, apparel and accessories, primarily under the Sizeer and 50 Style fascias. For the year to January 31, 2020, MIG generated revenues of around £200mln.
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While the size of the transaction was not disclosed, JD said put and call options have been agreed to enable exit opportunities for the sellers with whom it will work in partnership. The acquisition is expected to complete before the end of May.
“This is an exciting acquisition for JD that will further build on the success of our international development strategy, expanding our operations into Central and Eastern Europe”, JD Sports executive chairman Peter Cowgill said in a statement.
“We have observed and admired the development of MIG over a number of years and we are confident that the combination of their highly experienced and knowledgeable management team, together with the expertise of the JD leadership team, will provide the group with strong foundations from which to successfully optimise the opportunities in the region. We look forward to closing the transaction and welcoming the MIG team to the group”, he added.
In a note on Friday, analysts at house broker Peel Hunt retained their ‘buy’ rating and 1,000p target price on the stock, saying that while the MIG deal was “small” it gave JD “a foothold in interesting growth markets” and they expected more deals are ahead as JD continued to build its global presence.