KWM, Cuatrecasas counsel on JD Sports´ acquisition of Deporvillage

King & Wood Mallesons has advised ISRG (JD Sports) on its acquisition of an 80% stake in Spanish retailer Deporvillage, represented by Cuatrecasas in a deal worth €140 million

UK retail group ISRG (Iberian Sports Retail Group), comprising JD Sports, Sprinter and Sport Zone, has announced the acquisition of 80% of Deporvillage, S.L. to become the leading multichannel sports equipment retailer in the Iberian Peninsula, a deal worth around £120 million (around €140 million), representing an enterprise value of €175 million.

Headquartered in Manresa, Barcelona, Deporvillage is one of the leading online operators of specialised sports equipment in Europe. Following its launch in Spain in 2010, Deporvillage has experienced a meteoric international expansion serving orders to more than 100 countries. For the year ended 31 December 2020, Deporvillage, generated revenues of €117.8 million and made a profit before tax of €7.7 million. Gross assets as at 31 December 2020 were €51.1 million.

The acquisition of Deporvillage will add to the group’s expertise in key sports categories, significantly increase digital capabilities in the sports equipment market and complement the positive development of the Sprinter and Sport Zone labels.

“We welcome Deporvillage to the Group with the confidence that its excellent team will add its capabilities and results to our project of offering European consumers the best multi-brand and omni-channel sports equipment shopping experience in the market,” said Miguel Mota, managing director of Iberian Sports Retail Group.

“Joining ISRG is a new milestone for Deporvillage. For us, it has been a very important step with which we hope to bring to the group our digital knowledge and at the same time take advantage of the capabilities and opportunities that belonging to a group led by JD Sports gives us,” explained Xavier Pladellorens, CEO of Deporvillage.

With this latest acquisition, the ISRG group expects to exceed €900 million turnover, employ more than 9,000 people and make a strong international footprint covering more than 60 sports disciplines and 1,000 brands.

The transaction has been advised financially by Arcano and legally by Cuatrecasas on the seller’s side and by KWM on the buyer’s side.

KWM advised the buyer with a team led by Commercial/M&A partner Pablo Díaz (pictured left).

Cuatrecasas acted for Deporvillage with a team formed by M&A partner Javier Villasante (pictured centre) and Tax partner Paz Irazusta (pictured right), along with principal associate Javier Rovira and associate María Corzo.