UPDATED: Sports Direct strikes £35m deal to fully acquire Ireland's Heatons

Sports Direct, which already has a 50% stake in the chain, has entered into a sale and purchase agreement with Sandra Minor, a minority shareholder in Heatons’ holding company Warrnambool. Ashley’s firm has also inked an option agreement with the remaining shareholders in Warrnambool to acquire the shares it does not already own.

The deal, revealed by Retail Week yesterday, will see Sports Direct pay a total sum of €47.5m (£35m).

However it remains subject to regulatory approval in Ireland.

An Irish retail industry source told Retail Week that news of the Sports Direct pounce had been broken to Heatons head office staff in Tallaght, Dublin, on Tuesday.

Sports Direct is keen to expand its operations beyond the mainland UK and in partnership with Heatons. The latter runs 44 stores in the Republic of Ireland and 10 in Northern Ireland and sells fashion and homewares.

Of the stores in the Republic of Ireland, 27 have a dedicated “SportsWorld” in-store and 10 of the Northern Ireland stores either incorporates a “Sports Direct” branded section or is located immediately adjacent to a “Sports Direct” outlet which forms part of the outlet.

Sports Direct chief executive Dave Forsey said: “We look forward to accelerating investment into the existing store portfolio and strengthening the Heatons and Sports Direct brandsacross Ireland.”

The source said that the takeover of Heatons would “cement” Sports Direct’s position in the Republic.

One source said the takeover could help Sports Direct boost EBITDA following a revision down of the former 2016 target of £480m to £420m after planned acquisitions, such as that of department store group House of Fraser, were not successfully pulled off.

Sports Direct has also recently acquired a 19% stake in home shoppng group Findel, owner of the sports retail business Kitbag.