KPMG helps JD Sports bag Canterbury

The global brand of sportswear maker Canterbury of New Zealand has been sold to JD Sports in a highly complex deal brokered by KPMG corporate finance experts.

JD snapped up the worldwide Canterbury brand, goodwill and certain fixed assets from Kuwait Finance House for £6.5m.

At the same time, KPMG sold the trade and assets of Canterbury Europe to JD Sports for an undisclosed sum, preserving about 50 jobs.

Canterbury Europe was placed into administration last month, terminating sponsorship contracts with some of Europe's biggest rugby clubs.

The highly complex deal safeguards the future of the Canterbury business in Australia and New Zealand and also ensures the continued presence of the Canterbury brand in the UK and across Europe, KPMG said.

JD will operate the brand in the UK and across Europe, but sold the licensing rights for the Australia and New Zealand businesses, which were still operating as a going concern, back to Ross Munro for an undisclosed sum.

Munro runs the Australasian and New Zealand businesses and is also a shareholder.

Christian Mayo, corporate finance partner at KPMG said, 'This was a complex deal across different territories but one which ultimately ensures that this iconic sportswear brand will continue to have a global presence.

'Following the administration of Canterbury Europe Limited last month, this transaction will safeguard jobs in Europe and ensure the future of the global brand.

'The administration, coupled with complex inter-relationships between various operations in different parts of the world, made finding a buyer and structuring a successful deal a real challenge.

'However, we’re delighted that the brand is now in the hands of a company who will be able to take it forward both in the UK and overseas.'