Source: Sharecast
DTLR is majority-owned by private equity firms BRS & Co and Goode Capital. JD said about $100m of the purchase price would be used to repay debt.
The Baltimore, Maryland-based business has 247 stores in 19 states. JD said it was a “hyperlocal” sports shoe and clothing streetwear retailer.
JD said DTLR would add to its existing business in the north and east of the US including the JD and Finish Line fascias and to its recent $325m purchase of Shoe Palace on the west coast. JD shares rose 6.8% to 797.6p at 08:31 GMT.
Peter Cowgill, JD’s executive chairman, said: "This is another exciting milestone in the group's development in the United States. Like Shoe Palace, DTLR pride themselves on the deep connection they have with their consumers and the active role they play in the communities that they serve. As such, we intend to retain the DTLR Villa fascia and its proposition.”
Glenn Gaynor and Scott Collins, DTLR’s co-chief executives, will stay on to run the business and will reinvest part of their windfall from the sale to have a stake of about 1.4%.
Independent retail analyst Nick Bubb said: "[JD's] hyperactive management team have been busy spending even more money in the US. The ink is barely dry on JD’s last US acquisition."
JD has been on the lookout for acquisitions during the Covid-19 crisis. Shareholders were relieved when Cowgill pulled out of a potential purchase of Debenhams but JD is said to have held talks with Asos about running Topshop stores after Asos bought the brand from the rubble of Philip Green's Arcadia group.
