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JD Sports buys Spanish pureplay as it expands further into Europe and into the sports equipment market

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JD Sports Fashion today said it is to buy a majority stake in a Spanish sports equipment pureplay as it expands further within Europe.

The retailer is buying an 80% stake in Catalonian company Deporvillage, which specialises selling cycling, running and outdoors equipment. Deporvillage first launched in Spain in 2010, and then expanded with country specific websites in Italy, France, Portugal, Germany and the UK. In the year to December 31 2020, it made a pre-tax profit of €7.7m on turnover of €117.8m.

Founders Xavier Pladellorens and Angel Corcuera, who have a 20% stake in the business, will continue in their respective roles as chief executive and chief purchasing officer. 

The move is intended to boost JD Sports’ position and digital capabilities in the sports equipment categories that it serves.

Peter Cowgill, executive chairman of JD Sports Fashion, says: “Deporvillage has a strong consumer-centric approach and is the market leader in its categories in Spain with significant potential for further international development. We look forward to closing the transaction and welcoming the Deporvillage team to the group.”

This is the latest in a number of acquisitions from JD Sports as it expands beyond its UK roots. The sports and athleisure retail group has this year bought two US retailers and another in central Europe as part of a strategy to extend its global reach and so become more attractive to the brands whose products it sells. It explains its strategy like this: “Extending the global reach of our JD fascia is viewed positively by the international brands, both existing and new, and we look to leverage that positive regard for our proposition by negotiating enhanced access to new and often exclusive products, further increasing the differentiation in our offer.” 

Both digital and stores are part of its multichannel strategy of showcasing products in-store while enabling shoppers to buy online for home delivery or collection. 

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