Sports Direct, the listed sporting goods chain that owns 50 per cent of Irish department store Heatons, has said it has entered an agreement to buy the remaining shares it does not own in the retailer.
The UK chain, founded by billionaire football club owner Mike Ashley, said it has entered into a €47.5 million sale and purchase agreement with Sandra Minor to purchase its shares in Warrnambool, the holding company of Heatons.
Heatons, which specialises in men’s, women’s and children’s clothing and homewares, has 44 stores in the Republic and a further 10 in Northern Ireland.
Sports Direct said it has also entered into a conditional put and call option agreement with Mark Heaton, Hugh Heaton, John O'Neill, Warrnambool and Katipo Limited in relation to the remaining shares in Warrnambool which are not already owned by Sports Direct
Warrambool, which also owns and operates five standalone Sports Direct stores in the North. had consolidated revenue of €219.3 million, gross assets of €158.0 million, ebitda of €17.2 million and profit before tax of €10.0 million for the year ending April 30th.
Sports Direct said the deal will be funded from the group’s operating cashflow and existing bank facilities.
The agreements are conditional upon clearance from the Competition and Consumer Protection Commission.
"We look forward to accelerating investment into the existing store portfolio and strengthening the Heatons and Sports Direct brands across Ireland," said Dave Forsey, chief executive of Sports Direct.
