Sports Direct swoops in on Heatons parent company Warrnambool

In addition, the company has signed a conditional “put and call” option agreement with Warrnambool’s remaining investors, including Hugh Heaton, John O’Neill and Mark Heaton, that would result in Sports Direct gaining 100% control of the company.

Sports Direct now holds 50% of the issued share capital of Warrnambool.

Britain’s leading sports retailer Sports Direct has reached agreement to assume full ownership of diversified Irish retailer, Heatons, in a €47.5m deal.

Earlier on Wednesday, Sports Direct said it was looking to takeover Warrnambool, the holding company of retail business Heatons.

Heatons has 44 stores in the Republic of Ireland and 10 in Northern Ireland.

The blue-chip group further revealed that it had inked a conditional put and call option agreement with the remaining shareholders in Warrnambool to purchase the rest of the business.

Shares in Sports Direct were down by almost 4pc to 745 pence in mid-afternoon trading in London yesterday, with a few analysts disappointed that the firm had not closed a larger deal. 27 of the outlets in the Republic of Ireland include a “SportsWorld” section, whilst the stores in the North either incorporate a Sports Direct branded section or are adjacent to a Sports Direct outlet.

The Purchase Agreement and the conditional Option Agreement are both conditional upon merger clearance being obtained.

CEO Dave Forsey said he looked forward to “accelerating investment into the existing store portfolio and strengthening the Heatons and Sports Direct brands across Ireland”. The options are are exercisable at various times after the deal gets clearance and before 2 July 2017.

Last financial year Heatons’ holding company, Warrnambool, had revenues of more than €219million (£161million), gross assets of €158million (£116million) and profits €10million (£7.3million).