{"id":954222,"date":"2020-12-15T11:43:56","date_gmt":"2020-12-15T17:43:56","guid":{"rendered":"https:\/\/www.snkrsday.com\/?p=954222"},"modified":"2020-12-15T20:45:18","modified_gmt":"2020-12-16T02:45:18","slug":"jd-sports-acquires-shoe-681-million-usd-deal","status":"publish","type":"post","link":"https:\/\/www.snkrsday.com\/jd-sports-acquires-shoe-681-million-usd-deal\/","title":{"rendered":"JD Sports Acquires Shoe Palace for $681M"},"content":{"rendered":"\n
In breaking news, UK retailer JD Sports<\/a> has acquired privately owned US footwear retailer Shoe Palace<\/a> for $681 million USD. According to Reuters<\/em><\/a>, the key reasons for the acquisition was determined by geographic concentration and exposure to Latino and Hispanic communities.<\/p>\n\n\n\n \u201cIt helps us expand our reach and focus in what is the homeland of athletic leisurewear,\u201d Peter Cowgill, executive chairman of JD Sports, stated in the report. <\/p>\n\n\n\n JD Sports will pay the four Mersho brothers, who have been running the Shoe Palace business since their father founded it in 1993, a cash amount of $325 million, including $100 million paid in installments over the coming year. In addition, the company will give the four brothers a 20 percent equity stake in JD Sports\u2019 US subsidiary, valued at $356 million. The four brothers will continue to stay on to help merge the business with JD\u2019s existing management team.<\/p>\n\n\n\n JD Sports hopes this move will increase their exposure in key US markets, considering Shoe Palace currently has 167 stores, with more than half located on the West Coast. Additionally, the stores are located in Texas, Nevada, Arizona, Florida, Colorado, New Mexico, and Hawaii. According to the report, Shoe Palace generated $435m in revenues and a pre-tax profit of $52m in the year leading up to December 31, 2019.<\/p>\n\n\n\n Cowgill additionally shared, “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.<\/p>\n\n\n\n We are confident that our combined fascias will provide us with the flexibility and expertise to fulfill our mutual ambition of becoming a prime customer destination for sneakers and lifestyle apparel in the United States.<\/p>\n\n\n\n We look forward to being part of the JD family and continuing to serve our customers and communities for many years to come.”<\/p>\n\n\n\n