JD Sports, headquartered in Greater Manchester, has sold its majority share in Total Swimming Group.
- JD Sports initially acquired a 60% stake in Total Swimming Group in 2022 for £11.1 million.
- The sale involves conditions with a potential additional payment of £4 million based on future performance.
- Company changes include the resignation of several JD Sports directors from the board following the sale.
- Total Swimming Group aims to enhance swimming accessibility, maintaining leadership by Rebecca Adlington and Steve Parry.
In a strategic move, JD Sports sold its majority share in Total Swimming Group, a company devoted to expanding swimming accessibility for children through its Swim! initiative. Originally securing a 60% stake in the Bolton-based firm in 2022, JD Sports aimed to leverage its investment to enhance the reach and facilities of Total Swimming Group. The initial purchase was completed for £11.1 million, with stipulations allowing for an additional £4 million contingent upon the company meeting specific performance benchmarks and closing conditions.
The founding members, Rebecca Adlington, a celebrated Olympic swimmer, and her fellow Olympic colleague Steve Parry, continue to steer the company as directors. Meanwhile, Adrian Turner, another founder, opted to step down, reflecting a shift in the company’s governance structure post-transaction. Concurrent with these changes, key figures from JD Sports, including CEO Regis Schultz, CFO Dominic Platt, and JD Gyms CEO Alun Peacock, resigned from the board, signalling a dissolution of JD’s direct involvement following the sale.
Reflecting on the broader corporate landscape, JD Sports recently marked a significant financial performance with a record revenue surpassing £5 billion in the first half of its fiscal year. Their expansion strategy included acquiring the fashion-oriented American retailer Hibbett, aiming to sustain growth and reinforce market presence. This financial strategy aligns with JD Sports’ decision to divest from non-core assets like Total Swimming Group, potentially to refocus resources and managerial attention on primary retail operations.
Amelia Worrall’s appointment as a new director and the transition of control to We are Swim Holdings Limited, now governed by Therese Briant, illustrates a shift towards independence for Total Swimming Group. This change is expected to augment the operational autonomy of the business, enabling it to concentrate on its core mission of promoting swimming across various locations in the UK. JD Sports, however, did not provide a comment regarding the sale, adhering to its policy of discretion in strategic corporate maneuvers.
This strategic divestment by JD Sports reflects its commitment to refining its business focus while enabling Total Swimming Group to advance its mission independently.
