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JD Sports Buys Finish Line in $560 Million Deal

JD Sports Buys Finish Line in $560 Million Deal

JD Sports Buys Finish Line in $560 Million Deal
March 26
20:54 2018
Booking.com



English sports chain JD Sports is making a play for the U.S. market with its decision to buy The Finish Line for $558 million.
The cash deal includes all of Finish Line’s issued and outstanding stock at $13.50 per share and is subject to approval by the company’s board. A special committee appointed by Finish Line’s board has formally recommended that the buyout be approved, according to chairman Bill Carmichael.
“With JD, Finish Line achieves immediate value for its shareholders and moves into a stronger position to compete as part of a global enterprise that leads in our industry,” he added.
Shares of Finish Line shot up 31.14 percent Monday to a yearly high of $13.84.  The company’s stock peaked in 2014 at a price of $31.40 per share.
Nevertheless, Finish Line and JD said in a joint statement that the $13.50 purchase price represents a 28 percent premium for Finish Line shareholders, while noting the “excellent strategic fit” the merger creates.
Peter Cowgill, JD’s executive chairman, said the merger gives his company the ability to establish itself  “in the world’s largest ath-leisure market.”
“It immediately offers a major presence in the US, a clear next step to further increase our global scale,” Cowgill added. “Finish Line

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