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(Reuters) – British retailer Frasers Group said on Friday it had bought shares in premium fashion brands from JD Sports for around 47.5 million pounds ($57.7 million), as the Mike Ashley-owned company continues its way to a more premium market.
Frasers, formerly called Sports Direct, also acquired and transferred shares in more than 10 of the premium fashion brands, including Pretty Green, Cricket and Topgrade Sportswear, which the sports retailer owned.
JD Sports, in a separate statement, said it had sold 15 of its UK businesses to Frasers.
British retailers have been struggling as consumers tighten their pockets and cut non-essential spending during the worsening cost of living crisis and skyrocketing inflation.
“We are pleased to have agreed to the sale of these attractive but secondary brands,” said Régis Schultz, CEO of JD Sports, adding his thanks to his colleagues at these brands.
JD Sports said these divestments will allow the company to focus on international and digital expansion of leading premium sportswear platforms.
The deal, which Frasers Group will fund through existing cash resources, comes during a year that has seen both companies see changes in top jobs.
Frasers, which is on a spree of acquisitions, recently increased its maximum exposure to German fashion house Hugo Boss and acquired a more than 5% stake in British online fashion retailer ASOS.
JD Sports added that the deal for eight of the businesses and all debt from the brands sold to JD Sports has been closed immediately, while the deal for the rest of the business is expected to be completed early next year.
($1 = 0.8230 pounds)
(Reporting by Amna Karimi in Bengaluru; Editing by Krishna Chandra Eluri and Josie Kao)
Source: news.google.com