Sports Direct International Plc Potential Acquisition (4583B)
October 07 2015 - 2:00AM
UK Regulatory
TIDMSPD
RNS Number : 4583B
Sports Direct International Plc
07 October 2015
7 October 2015
Sports Direct International plc
Potential acquisition of Irish company Warrnambool (Heatons)
Sports Direct International plc ("Sports Direct" or the
"Group"), the UK's leading sports retailer, announces that it has
entered into: (i) a sale and purchase agreement with Sandra Minor
(a minority shareholder in Warrnambool) to purchase shares in
Warrnambool which, following completion of that purchase will
result in Sports Direct owning just over 50% of Warrnambool (the
Purchase Agreement); and (ii) a conditional put and call option
agreement (the Option Agreement) with Mark Heaton, Hugh Heaton,
John O'Neill, Warrnambool and Katipo Limited in relation to the
remaining shares in Warrnambool which are not already owned by
Sports Direct (Sports Direct currently holds 50% of the issued
share capital of Warrnambool).
Warrnambool is the holding company of Heatons, a retail business
which specialises in retailing men's, women's and children's
clothing together with homewares, with 44 stores in the Republic of
Ireland and ten stores in Northern Ireland. 27 of the 44 stores in
the Republic of Ireland incorporate a dedicated "SportsWorld"
section within the store and each of the ten stores in Northern
Ireland either incorporates a "Sports Direct" branded section or is
located immediately adjacent to a "Sports Direct" outlet which
forms part of the premises. In addition, Warrnambool owns and
operates a further five standalone "Sports Direct" branded stores
in Northern Ireland.
The total cash consideration payable under the Purchase
Agreement and the conditional Option Agreement is EUR47.5m, which
will be funded from the Group's operating cashflow and existing
bank facilities. The Purchase Agreement and the conditional Option
Agreement are both conditional upon merger clearance from the Irish
Competition and Consumer Protection Commission being obtained. If
such merger clearance is obtained, completion of the purchase of
shares from Sandra Minor under the Purchase Agreement will take
place shortly thereafter. The options are exercisable at various
times during a period commencing after such merger clearance has
been obtained and ending on 2 July 2017.
For the year ended 30 April 2015, Warrnambool had consolidated
revenue of EUR219.3 million, gross assets of EUR158.0 million,
EBITDA of EUR17.2 million and profit before tax of EUR10.0
million.
Dave Forsey, Chief Executive Officer of Sports Direct,
commented: "We look forward to accelerating investment into the
existing store portfolio and strengthening the Heatons and Sports
Direct brands across Ireland".
For further information, please contact:
Sports Direct International T. 0344 245 9200
plc
Dave Forsey, Chief Executive
Officer
Matt Pearson, Acting
Chief Financial Officer
Powerscourt T. 0207 250 1446
Rory Godson
Peter Ogden
Nick Brown
Notes to Editors
Sports Direct is the UK's leading sports retailer by revenue and
operating profit, with approximately 400 stores across the UK. The
Group provides an unrivalled range of products, offering
exceptional quality and unbeatable value, from a wide variety of
third-party and Group-owned brands, both in-store and online.
Sports Direct now operates in 20 countries in Europe.
For more information please visit: www.sportsdirectplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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