StockMarketWire.com - Retailer JD Sports Fashion reached an agreement to takeover Footasylum in a deal worth approximately £90.1m. Under the terms of the Offer, Footasylum Shareholders would receive 82.5p each, representing a 77.4% premium to the closing price of 46.5p per Footasylum share on 15 March 2019. The offer, tabled on 28 February, was valued at £90.1m. The takeover offer comes less than a month after JD Sports acquired 8.3% stake in Footasylum. Footasylum's offering, targeted at a slightly older consumer to JD's existing offering, was expected to be complementary to JD and also deliver 'significant operational and strategic benefits from a combination of the two businesses,' JD Sports said. The Footasylum directors intended to recommend unanimously that its shareholders accept the terms offer. The offer would be conditional on a number of factors including JD securing no less than 90% of Footaymlum shares. The deal was was expected to be completed in April or May 2019.

Full acceptance of the offer would result in the payment by JD of up to approximately £74.0m in cash to Footasylum shareholders.

Following completion of the Acquisition, JD said it intended to 'maintain a separate operational management structure in Footasylum and aims to leverage existing infrastructure and the expertise of both sets of management to deliver a best in class multi-brand and multi-channel consumer experience across the combined group.'

JD touted cost savings from consolidating Footasylum headquarter operations and removing some of the latter's central corporate and support functions, though insisted that the impact on overall headcount would be 'limited.'

For the financial year ended 24 February 2018, Footasylum generated revenue of £194.8m, adjusted earnings (EBITDA) of £12.5m and profit before tax of £1.9m.





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