JD Sports has announced the acquisition of American shoe retailer Shoe Palace in a bid to increase its exposure on the US west coast.
The sporting goods retailer has bought the California-based shoe firm for a cash consideration of $325m (£244m) of which $100m (£75m) has been deferred and will be paid on various dates over the next 12 months.
Shoe Palace, which operates 167 stores across the US, will continue to be managed by founders the Mersho brothers, and will begin sharing ideas and practices with the JD team from next year.
The acquisition is the next stage in JD’s American development plans for its Finish Line and JD fascias, particularly increasing its exposure on the west coast.
In the year to December 31, 2019, Shoe Palace reported a profit before tax of $52m (£39m).
JD Sports chief executive Peter Cowgill said: “We are delighted to have completed the acquisition of Shoe Palace. The Shoe Palace team are ambitious, have great energy and pride themselves on their consumer connection and we welcome them to the group.
“We are confident that our combined fascias will provide us with the flexibility and expertise to fulfil our mutual ambition of becoming a prime customer destination for sneakers and lifestyle apparel in the United States.”
Shoe Palace boss George Mersho added: “We could not imagine a better way to continue to build on the legacy of our family business. Through this combination with JD and Finish Line in the US, we have gained a strong global partner.
“We look forward to being part of the JD family and continuing to serve our customers and communities for many years to come.”
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