Genesis Holdings, the current wholly-owned intermediate holding company of JD Sports Fashion in the US, bought all of the issued shares in the Shoe Palace Corporation and the members’ interests in Nice Kicks, according to a Tuesday, December 15, announcement.
“We could not imagine a better way to continue to build on the legacy of our family business. Through this combination with JD and Finish Line in the US, we have gained a strong global partner,” Shoe Palace CEO George Mersho said in the announcement.
Overall cash consideration for the purchase of the company is US$325 million, which is subject to “customary cash/debt and working capital adjustments,” of which US$100 million has been deferred and will be paid on different dates over the 12 months to come.
The group’s cash resources and current bank facilities are funding the cash consideration. Also, the Mersho Brothers, who operate Shoe Palace, have been issued equity in Genesis so that they will have 20% ownership of the enlarged group in the US.
Furthermore, many put and call options have also been agreed, to allow for exit opportunities at a later time for the Mersho Brothers, the announcement stated.
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