RadioOnFire.com - A United Kingdom sportswear company named JD Sports Fashion has found a way to enter the US market and knock a rival at the same time after announcing they have reached a deal with apparel retailer Finish Line to acquire the company for $558 million.
JD Sports Fashion agreed to buy the Indianapolis-based Finish Line on Monday. The move helps the UK company to establish a foothold in the US market sportswear market as they will be acquiring Finish Line’s 556 stores and branded floor space in 375 Macy’s locations.
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Finish Line has experienced declines in sales in recent years. According to Market Watch, the company has been slumping due to the lack of traffic in traditional brick and mortar stores. According to Finish Line, stores which have been opened more than a year have experienced a 7.9 percent drop during the company’s fourth quarter.
As for JD Sports Fashion, the deal hurts the reach of their direct rival, Sports Direct International, as they had a 9 percent stake in Finish Line. While the deal won’t be finalized until shareholders in both companies approve the sale, JD Sports' Executive Chairman Peter Cowgill believes the tentative agreement is a significant step forward for the brand.
“This is a landmark day for JD and will be transformational for the business,” Cowgill said. “It immediately offers a major presence in the U.S., a clear next step to further increase our global scale,"
Source: msn.com
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