JD Sports To Buy Finish Line for $558 Million

Ann Santiago
March 28, 2018

"It immediately offers a major presence in the US, a clear next step to further increase our global scale", JD Sports' Executive Chairman Peter Cowgill said.

The sportswear retailer has struck a £396 million conditional deal to buy Finish Line, which it expects to complete in June.

The retailer's move into the largest sportswear market is its boldest yet, increasing JD Sports' importance to global brands, particularly Nike and Adidas.

Athletic apparel chain Finish Line's (FINL) acquisition by United Kingdom retail giant JD Sports may benefit Nike (NKE), Adidas (ADDYY) and Under Armour (UAA), while creating a savvy new threat to Foot Locker (FL), analysts say. "Finish Line has many similarities to JD with a strong bricks and mortar offering complemented by an advanced and well-invested digital platform". Its acquisition of Finish Line will add a nationwide brand with more than 900 retail locations and a significant online. 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 also reported its preliminary fourth quarter results for the 14-weeks ending March 3 on Monday. Public Employees Retirement System of OH increased its position in shares of Finish Line by 15.9% during the 2nd quarter.


The directors also believe that they will be able to bring "new and differentiated product" to the USA market through the opening of a number of JD branded stores and accelerated refurbishment of the Finish Line stores, as well as working with Finish Line's management to continue to consolidate Finish Line's retail estate and improve its retail offer.

The Finish Line statement said the companies anticipate the combined purchasing power and relationships in North America "to bring a highly differentiated multi-channel retail proposition to the USA market". This is according to Finish Line's Schaeffer's put/call open interest ratio (SOIR) of 0.09 that ranks in the 5th percentile of its annual range.

The takeover agreement is valued at $13.50 per Finish Line share in cash, or a total of $558 million.

Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of The Finish Line, Inc.

JS Sports has Hughes Hubbard & Reed LLC, Addleshaw Goddard LLC and Taft Stettinius & Hollister LLP as its legal advisors for the deal. Barclays, HSBC Bank and PNC Bank, National Association are providing JD Sports with financing for the deal.

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