End of an era for the Tsiknakis family at Cosmos Sport, as JD Sports Fashion is proceeding with the acquisition of the company's remaining 20%, paving the way for full shareholder control of the sporting goods chain.
The British company, as it announced yesterday, exercised on August 28 the call option on the 20% minority stake in Cosmos Sport in Greece and Cyprus. According to the announcement of JD Sports' half-year results, the transaction is expected to be completed by the end of September, while the total consideration is expected to be around 44 million euros.
The move constitutes the final chapter of a process that began in 2021, when JD acquired 80% of Cosmos Sport. Before that transaction, the Tsiknakis family held 70% and EOS Capital Partners the remaining 30%. EOS sold its entire stake, while the family remained with a 20% stake.
When JD entered Cosmos in 2021, the Greek company operated 57 stores in Greece and three in Cyprus, with the main concepts being Cosmos Sport and Sneaker10. At the end of the first half of this year, JD records 90 Cosmos stores, compared with 85 at the beginning of the financial year, having carried out six openings and one closure within six months.
JD states that the option exercise price is expected to align with the value of the related liability that had already been recognized, namely approximately 44 million euros, A simple extrapolation of this amount to 100% would theoretically give a value of approximately 220 million euros for Cosmos Sport. The amount of 44 million euros is linked to the contractual terms of the option and the accounting valuation of the related liability. JD itself explains that liabilities from put and call options are valued based on the estimated exercise price and, depending on the agreement, may be linked among other things to EBITDA forecasts and predetermined multiples.
For the Tsiknakis family, the exercise of the option closes a cycle that began 44 years ago in Hersonissos from a 40 sq.m. store. The transaction concerns share ownership. JD's announcement does not mention a corresponding departure of family members from the management of Cosmos Sport.