LONDON, Aug 31 (Reuters) - Decathlon has signed a letter of intent to buy 50% of Sport 2000 France, owned by sports retail group Céraclès Coopérative, in a deal that would expand its presence in French ski resorts, the two companies said on Tuesday.
Ceracles' Sport 2000 stores would remain independently operated under a franchise model, but the deal would enable Decathlon to enter the ski rental market and make its products available in the retailer's network of stores in the French Alps and Pyrenees, said Jérémy Angelard, Decathlon's chief business officer for Europe.
"We have to continue to grow and to improve our footprint on products but also on services, because that's a huge part of the sports market that we are touching, but not at the speed that we want," Angelard said in an interview.
Decathlon, which made €16.8 billion ($19.5 billion) in sales across 82 countries last year, has been growing its own brands and seeking to acquire specialist retailers as it aims to win a bigger share of the growing sports market.
Mountain sports —including snowsports and hiking equipment — account for around 25% of Decathlon's business in France, but Decathlon only has five stores in the mountains while Sport 2000 has 190, said Angelard.
Through the deal with Céraclès, Decathlon would also get access to the group's other retail chains Mondovélo, Espace Montagne, Ekosport-Rent, WAS We Are Select, S2 Sneakers Specialist, and Urban Soccer. Céraclès has 700 stores in total across France, including 400 Sport 2000 stores,whileDecathlon has 325 stores in the country.
Discussions are underway and the deal remains subject to regulatory approvals, the companies said. They did not disclose the size of the deal.
($1 = 0.8622 euros)
(Reporting by Helen Reid; editing by Barbara Lewis)
