JD Sports to purchase Champion
JD Sports Fashion has exchanged contracts with Champion Sports and has extended a secured loan to the company, it has been revealed.
JD Sports Fashion has revealed that business negotiations with Champion Sports Holdings have advanced.
The chairman of JD Sports Peter Cowgill said that contracts had been exchanged and that the move would help boost his firm's presence in the Republic of Ireland.
In a statement released by JD Sports, the company said: "The board expects that the Champion acquisition will be earnings enhancing in future years after investment in the store portfolio and the realisation of operational synergies."
The organisation is set to advance €17.1 million (£14.6 million) in the form of a secured loan to allow Champion's outstanding indebtedness.
It also revealed that the management team at Champion would be retained, including chief executive John Quinn.
Figures released by the company earlier this year showed that like-for-like sales in the five weeks up to January 1st 2011 were up 2.5 per cent as the company benefited from strong Christmas sales.