JD Sports has struck a deal to buy US clothing, footwear and accessories business The Finish Line as it ramps up its international expansion.
The sports fashion retailer said it has agreed to acquire its American counterpart for $13.50 per share, valuing the business at $558m (£396m).
The deal will see JD Sports snap up Finish Line’s 556 stores, which trade across 44 US states and in Puerto Rico.
Finish Line also operates 375 branded and 188 unbranded concessions within US department store giant Macy’s.
The business registered a pre-tax profit of $54m (£38m) in the year ending February 25, 2017, having raked in revenues of $1.84bn (£1.3bn).
Finish Line is yet to reveal its full-year results for 2017/18, but has said revenues would be flat.
The US business, which is listed on the NASDAQ stock exchange with a market cap of around $425m (£301m), employs around 3,700 full-time staff and a further 9,300 part-time workers.
Finish Line’s existing executive team will continue to lead the business following the acquisition, which is now subject to approval from shareholders of both companies.
The deal, should it be given the green light, is expected to complete in June at the earliest.
JD said the purchase would “make a small incremental positive contribution” to its financial results in the year to February 2, 2019.
It added that the deal “offers the company the opportunity to expand its market-leading elevated proposition into the most significant global market. It immediately gains the benefit of a significant physical and online retail presence and increases the importance of the company to its major international brand partners.”
JD executive chairman Peter Cowgill said the purchase would be “transformational” for the business.
He added: “The acquisition represents an excellent opportunity for JD to establish its market-leading multi-brand proposition in the world’s largest athleisure market.
“It immediately offers a major presence in the US, a clear next step to further increase our global scale. Finish Line has many similarities to JD with a strong bricks-and-mortar offering complemented by an advanced and well-invested digital platform.
“We are looking forward to working with Finish Line’s experienced management team to bring best-in-class retail theatre to the US.”
Finish Line boss Sam Sato added: “Finish Line has long admired JD and their commitment to serve customers with premium brands through a unique and innovative retail experience.
“We are thrilled to partner with them and look forward to realising the impact we will have on the marketplace together.”