Pittsburgh -- Dick's Sporting Goods has agreed to make a 20 million pound investment ($31.75 million) in U.K. sports retailer JJB Sports plc, which operates over 180 stores in the United Kingdom and Ireland.
Dick's will purchase 18.75 million pounds ($29.76 million) in junior secured convertible notes and 1.25 million pounds ($1.98 million) in ordinary shares of JJB Sports. The transaction is subject to approval of the British company's shareholders.
Dick's has also received an option to buy an additional 20 million pounds in junior secured convertible notes of JJB in connection with a follow-on financing expected to take place in first quarter 2013.
Upon full conversion of the notes, Dick's would become a controlling shareholder of JJB.
“This is an exciting strategic investment that provides us with a valuable introduction into the workings of the United Kingdom sporting goods market from an established company that shares our commitment to serving the needs of core athletes,” said Edward W. Stack, chairman and CEO. “By partnering with JJB, we will be positioned to share our more than 60 years of operating experience in the United States while gaining insight into the specific needs of United Kingdom athletes, which will serve as a stepping stone for our company's future growth and development.”