Sports Direct International (SPD) – sale of Dunlop brand highlights hidden value
Sports Direct’s agreement to sell the rights to its Dunlop brand and related wholesale and licensing businesses compelled us to take a closer look at the total brand value of the Group’s other brands.With a large number of iconic brands in its portfolio, there appears to be plenty of hidden value.
The Dunlop Business has been sold to Sumitomo Rubber Industries Ltd. (SRI) for a cash consideration of US$137.5m. For the year ended 24 April 2016, The Dunlop Business had combined revenue of £42.64 million, gross assets of £41.76 million and profit before tax of £4.06m. That implies a hefty approx. 28x pre-tax multiple for this well-known, if somewhat under-rated, sports brand.
The divestment of the Dunlop Business is in…
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