JD Sports has acquired retailer Go Outdoors for £112m from its private equity owners.
Under the deal, JD Sports will buy the 58-store chain – whose products range from tents to bicycles – from YFM Equity Partners and 3i Group. The purchase will add to JD Sports’ stable of outdoor brands such as Blacks, Millets and Ultimate Outdoors.
As a result of the deal, the Go Outdoors founders, Paul Caplan and John Graham, will leave the business.
Brexit initially caused the sterling to slump and potentially this deal from going through due to tensions over the pricing. However, there are opportunities that come out of Brexit. Brexit has in a sense encouraged ‘staycations’ in the UK, as the weaker pound made overseas trips more expensive. The need for more camping gear and outdoors hiking gear has created healthy sales figures of £202m for Go Outdoors. The news of the acquisition of Go Outdoors by JD Sports is welcomed. For companies looking to acquire a target or looking to sell, here are the top ten headline areas to consider:Financial StatementsIndustry AnalysisCompetitive AnalysisProducts/Services AnalysisManagementAsset AnalysisPatents & TrademarksLawsuits?SynergiesKey EmployeesIf you want any further information on things to think about when acquiring a target (or selling your company), feel free to contact me.
