Sports Direct International Unveils "Major International Expansion"

LONDON -- Sports Direct (LSE: SPD  ) this morning announced that it has entered into separate agreements to acquire majority stakes in two leading European sporting-goods retailers.

The first is a 51% equity stake in Sports Eybl & Sports Experts AG, which is the leading sporting-goods retailer in Austria with about 25% of market share and is a family owned company with 80 years of history under its belt. 

Sports Direct's acquisition is valued at 10.5 million euros payable to current EAG shareholders, with 30 million euros in subordinated debt also due to be invested in EAG. The agreement also allows Sports Direct the right to acquire the remaining shares in EAG from the Eybl Family for 15.5 million euros for five years following completion, while the Eybl Family also has the right to sell its remaining shares in EAG to Sports Direct for 5 million euros over the period.

The second agreement that Sports Direct announced this morning was a 60% equity stake purchase of Sportland International Group, the largest sporting-goods retailer in the Baltic region. SIG operates the Sportland, Sportland Outlet, Timberland, O'Neill, Nike, and Nike Outlet retail chains in Estonia, Latvia, and Lithuania.

Dave Forsey, Chief executive of Sports Direct International, commented:

The strategic investments announced today in Austria and the Baltic region represent a continuation of our previously stated European expansion plans. Expected benefits from these investments include increased scale for our international business, growing international awareness of our Group Brands and additional expertise in specialist product categories such as winter sports. We are delighted to be working with strong local partners such as the Eybl Family, Are Altraja and Anti Kalle and have every confidence in their ability to grow their businesses in Austria and the Baltics.

Shares in Sports Direct fell marginally on the news, down 1.4% as of 9 a.m. EDT. But this still represents a gain of more than 50% from a year ago, continuing its success following the "Olympic effect" of last summer.

But if you're looking for another company that should soar in price, we've pinpointed our favorite growth share and produced a special report in which we evaluate its finances, risks, and growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- completely free.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2457301, ~/Articles/ArticleHandler.aspx, 9/27/2016 3:19:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,218.89 124.06 0.69%
S&P 500 2,159.61 13.51 0.63%
NASD 5,302.42 44.93 0.85%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 11:58 AM
SPD $278.36 Down -6.14 -2.16%
Sports Direct Inte… CAPS Rating: No stars