JD Sports Fashion has entered into an agreement to buy US sports retailer The Finish Line, in a deal worth around $558m (£396m).
The conditional agreement will see the Bury-based retailer acquire 100% of the issued share capital of Finish Line at a price of $13.50 (£9.53) per share.
Finish Line is one of the largest retailers of premium multi-branded athletic footwear, apparel and accessories in the US.
It trades from 556 Finish Line-branded retail stores across 44 US states and in Puerto Rico, as well as online.
It is also the exclusive retailer of athletic shoes, both in-store and online, for Macy’s, operating 375 branded and 188 unbranded concessions within the department store chain.
JD said it will focus on bringing its “highly differentiated multichannel retail proposition to the US market” following the deal.
For Finish Line’s year ending 25 February, it had revenues of $1.84bn (£1.3bn) and a profit before tax of $54m (£38m). It employs around 3,700 full-time and around 9,300 part-time staff
Finish Line’s executive team will continue their involvement with the business following the acquisition.
The deal is subject to the approval of both JD and Finish Line shareholders and is expected to complete no earlier than June.
Peter Cowgill, executive chairman of JD, said: “The acquisition represents an excellent opportunity for JD to establish its market leading multi-brand proposition in the world’s largest athleisure market. It immediately offers a major presence in the US, a clear next step to further increase our global scale.
“Finish Line has many similarities to JD with a strong bricks and mortar offering complemented by an advanced and well-invested digital platform. This is a landmark day for JD and will be transformational for the business.”
Sam Sato, chief executive of Finish Line, added: “Finish Line has long admired JD and its commitment to serve customers with premium brands through a unique and innovative retail experience.”