JD Sports’ $325 Million Acquisition of Shoe Palace and Nice Kicks


Hughes Hubbard & Reed LLP advised JD Sports Fashion on the deal.

JD Sports Fashion completed its acquisition of U.S. athletic shoe retailers Shoe Palace and Nice Kicks against $325 million in cash, subject to escrows, holdback and customary cash/debt and working capital adjustments.

Shoe Palace and Nice Kicks are operated by four brothers from the Mersho family who, in addition to the cash consideration, will be issued equity in the combined business valued at approximately $356 million.

The acquisition significantly expands JD Sports’ presence in the U.S. and strengthens its connection with Hispanic consumers who represent a significant proportion of Shoe Palace’s customer base.

JD Sports was founded in the U.K. in 1981 and has since expanded throughout Europe and beyond, becoming one of the world’s leading retailers of sports and fashion brands. It now has over 2,440 stores in 19 countries.

Based in San Jose, Calif., Shoe Palace was established in 1993 by the Mersho family and has over 160 stores. More than half of the stores are located in California, with the others in Texas, Nevada, Arizona, Florida, Colorado, New Mexico and Hawaii.

The HHR team was led by Ken Lefkowitz (Picture) and Gerold Niggemann, and also included Andy Braiterman, Jerry Harrison, Matt Syrkin, Robert Bell, Rita Haeusler, Robb Patryk, Jim Delaney, Carol Remy, Samuel Hurt, Nitzan Weizmann, Kristin Millay, Justin Cohen, Andrew Herman, Robby Naoufal and Barbara Champoux.

Involved fees earner: Robert Bell – Hughes Hubbard & Reed; Andy Braiterman – Hughes Hubbard & Reed; Justin Cohen – Hughes Hubbard & Reed; James Delaney – Hughes Hubbard & Reed; Rita Haeusler – Hughes Hubbard & Reed; Spencer Harrison – Hughes Hubbard & Reed; Andrew Herman – Hughes Hubbard & Reed; Samuel Hurt – Hughes Hubbard & Reed; Kenneth Lefkowitz – Hughes Hubbard & Reed; Kristin Millay – Hughes Hubbard & Reed; Robby Naoufal – Hughes Hubbard & Reed; Gerold Niggemann – Hughes Hubbard & Reed; Robb Patryk – Hughes Hubbard & Reed; Carol Remy – Hughes Hubbard & Reed; Matthew Syrkin – Hughes Hubbard & Reed; Nitzan Weizmann – Hughes Hubbard & Reed;

Law Firms: Hughes Hubbard & Reed;

Clients: JD Sports Fashion;

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Author: Ambrogio Visconti