Bolt-on acquisition based in Greece and Cyprus JD Sports has announced the acquisition of Cosmos Sports, the leading player in Greece and Cyprus. It is acquiring 80% of the company for an undisclosed sum, with the remaining 20% to be owned by the Tsiknakis family. Put and call options have been put in place to enable the future exit opportunity for the Tsiknakis family. The business was founded in 1982 by Fragiskos Tsiknakis who continues to be active in the business, though the day-to-day operations are run by his 3 sons. Cosmos operates 57 stores in Greece and Cyprus under various banners. The principal banner is Cosmos with 32 stores, which is an elevated sporting goods/lifestyle proposition with a developed apparel offer (c.40% of sales). The average store size is 4,000 sq.ft, which is similar to a UK JD Sports. There are also 10 stores under the Sneaker fascia, which is a more premium offer, as well as stores under the Slam Dunk and Sportsfactory Outlet and associated websites. The business generated revenues of €52m in the year ending 31 December 2020, with a gross margin of 41.6% and EBITDA of €6.9m according to its accounts. While Cosmos already has access to most of the major athleisure brands, it doesn’t have access to the full ranges and so will benefit from the scale of JD Sports, strength of brand relationships and access to central support and knowhow. In keeping with other acquisitions, we expect the Group to use Cosmos as a platform to launch the JD Sports format. Reiterate BUY JD Sports’ recent CMD highlighted the multiple angles of growth available and the Group continues to have significant long-term growth potential. It is well-positioned to deliver double-digit growth for the foreseeable future. We continue to believe there is upside risk to forecasts and the valuation (CY22E PE 20.3x) remains undemanding.