Sports Direct sets its sights on Ireland’s Heatons

Sports Direct, which is controlled by Newcastle United owner Mike Ashley, has entered into a deal with Heatons’ minority shareholder, Sandra Minor, to take its existing stake in the retailer to above 50pc.

A statement explaining the deal refers to a “conditional put and call option agreement” to buy out shareholders Mark Heaton, Hugh Heaton, John O’Neill, Warrnambooll and Katipo Limited.

The retailer – famed for its pile ’em high and sell ’em cheap tactics – also has an option to buy those shares in Warrnambool which it does not already own, meaning it could become the full owner of the holding company.

Heatons has 44 stores across the Republic of Ireland and ten stores in Northern Ireland.

The deal represents further growth for Sports Direct, which wants to swell its presence outside of United Kingdom mainland.

Warrnambool also owns and operates five stand-alone Sports Direct branded stores in Northern Ireland.

The agreements are conditional upon clearance from the Competition and Consumer Protection Commission.

Twenty-seven of the stores in Ireland have a dedicated SportsWorld section while the 10 stores in Northern Ireland either have a Sports Direct-branded section or are located next to a Sports Direct outlet. The options are exercisable at various times during a period commencing after such merger clearance has been obtained and ending on 2 July 2017.

For the year ended April 30, 2015, Warrnambool had revenue of EUR219.3 million, gross assets of EUR158 million and profit before tax of EUR10 million.

“We look forward to accelerating investment into the existing store portfolio and strengthening the Heatons and Sports Direct brands across Ireland”, commented Dave Forsey, the chief executive of Sports Direct.