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British company JD Sports Fashion has transferred the ownership of Baltimore-based retailer DTLR Villa to its US unit Genesis Topco to align all its businesses in the United States under one entity to enhance the future operational collaboration between them. The company acquired DTLR in February this year for $495 million and Shoe Palace in December last.
“It was always JD’s intention for DTLR to be part of the Genesis sub-group but the requirement for speed and certainty of execution … meant that it was more appropriate for the Group to initially acquire DTLR directly,” JD said in a regulatory filing.
The regulatory filing added, “After customary working capital and other adjustments at completion, the total consideration payable by JD on the original acquisition of the Company was $504.4 million, which was funded through a combination of existing cash within the Group and a drawdown of debt. The consideration payable by Genesis to JD in relation to the Transfer is the same as the total consideration paid by JD on the original acquisition.
“By virtue of the fact that JD only owns 80 per cent of Genesis, JD will effectively be disposing of a proportion of its investment in DTLR to the four Mersho Brothers, who, with their 20 per cent aggregate shareholding in Genesis, are jointly a related party of JD,” it added.
Fibre2Fashion News Desk (DS)
British company JD Sports Fashion has transferred the ownership of Baltimore-based retailer DTLR Villa to its US unit Genesis Topco to align all its businesses in the United States under one entity to enhance the future operational collaboration between them. The company acquired DTLR in February this year for $495 million and Shoe Palace in December last.