Sports Direct (SPD) has announced plans to acquire two retailers in Austria and the Baltic states as part of its European expansion strategy.
In Austria, Sports Direct will pay €10.5m (£9m) for a 51 per cent stake in EAG, which runs two chains, Ebyl and Sports Experts, through 58 stores across Germany and Austria. It will also invest €30m in subordinated debt in EAG.
The group has a combined market share of 25 per cent and, in the year to 31 August, generated sales of €324m and net losses of €20.6m. EAG also owns 96 per cent of a real estate company that owns 18 properties leased to the retail businesses. The deal is expected to complete by 31 July, subject to clearance from competition authorities.
The smaller acquisition in the Baltic region will see Sports Direct take a 60 per cent stake in Sportland International Group, the largest sporting goods retailer in Estonia, Latvia and Lithuania. The cash consideration has not been disclosed, but, in the year to 21 December, SIG generated revenue of €61.6m from 80 stores. The deal is expected to close by 30 June.
