British’s biggest sportswear JD Sports bought Shoe Palace for $325 million to expand its footprint in the U.S. West Coast, according to Reuters. The deal would increase JD’s appeal among Hispanic and Latino consumers, who form a significant proportion of Shoe Palace’s customer base.
- Shoe Palace is operated by four brothers from the Mersho family and will get a 20% equity stake in JD’s U.S. unit.
- The brothers will continue managing Shoe Palace, but from next year, both company’s teams would “begin to share ideas and best practices.”
- The California-based Shoe Palace has 167 stores in the U.S., and generated a pretax profit of $52 million last year on revenues of $435 million.
- JD Sports entered the U.S. market in 2018 with the acquisition of Finish Line and will fund the Palace’s deal through its existing cash reserves and bank facilities
J.D. Sports stock is currently gaining. J.D: LON is up 1.57%