In a significant move, UK retail giant JD Sports has announced the acquisition of US-based retailer DTLR Villa for a staggering $495 million. This acquisition comes shortly after JD Sports pulled out of the bidding war to acquire Topshop. The deal is expected to be finalized in the first quarter of this year and will be financed using JD Sports’ cash resources and existing bank facilities.

DTLR Villa currently operates 247 stores across 19 states, mainly in the north and east of the United States. The company recorded an impressive EBITDA of $45.6 million and a pre-tax profit of $1.6 million in the 52-week period ending February 2020. Originally known as Downtown Locker Room when it was established in 1982, the company underwent a rebranding and merged with Sneaker Villa in 2017 to become DTLR Villa.

This acquisition is part of JD Sports’ strategic move to strengthen its presence in the US market and expand its JD and Finish Line chains. The recent purchase of Shoe Palace further contributes to its expansion strategy on the West Coast. Peter Cowgill, Chairman of JD Sports, believes that DTLR Villa’s strong connection with consumers and its active involvement in the communities it serves align perfectly with JD Sports’ core values.

Both Glenn Gaynor and Scott Collins, Co-CEOs of DTLR Villa, will retain their positions within the company. Furthermore, the management team will reinvest a portion of their proceeds back into the business, securing a minority stake of approximately 1.4%. JD Sports plans to retain the DTLR Villa brand and preserve its unique offerings.

Through this acquisition, JD Sports reaffirms its commitment to growth and expansion, not only in the UK but also in the highly profitable US market. By strategically maneuvering in the ever-evolving retail landscape, JD Sports aims to solidify its position as a global leader in the athletic footwear and apparel industry.

Useful Links:
1. JD Sports Announcement
2. Reuters: JD Sports Acquires DTLR Villa