LEISURE retailer JD Sports was is poised to more than double in size after announcing a £53.2m deal with rival Blacks Leisure.

The group has agreed to buy Blacks' sport and fashion division, which has its headquarters in Peterlee.

The deal includes the First Sport, Active Venture and Pure Woman brands and 209 stores.

The arm, which will operate as a stand-alone business, will boost JD Sports' total estate from 150 to 359 outlets.

But chairman John Wardle also pledged to continue growing the number of JD Sports-branded shops and to take the whole estate up to more than 500.

He said: "It is our intention to continue with our strategy of expanding the number of JD Sports stores to beyond 300 via organic growth."

The transaction comes after larger rival JJB Sports agreed its own deal, a £42.3m acquisition of Liverpool-based discount fashion chain TJ Hughes.

Wigan-based JJB currently has 435 branches but the deal, first announced in March, will add 36 department stores.

For Blacks, however, the deal represents a change of direction.

The sport and fashion division has been rocked by tough trading in recent months, and results for the year to February 28 will miss market forecasts.

Northampton-based Blacks, which moved its Sports and Leisure HQ to the former Fisher Price factory on the North West Industrial Estate in Peterlee last year, said it will now quit the "increasingly competitive" sports retail market and focus on the outdoor and boardwear sectors.

But the proposed sale, which is dependent on shareholder approval, means chief executive Simon Bentley will step down to be replaced by Roy Crosland, currently managing director of the outdoor division.

Chairman David Bernstein said: "Following the transaction, the group will have strong positions in two growth markets, a significantly stronger balance sheet and continued growth prospects."

JD Sports, based in Heywood, Lancashire, will fund the deal - expected to be earnings enhancing in the next financial year - from a specially arranged banking facility.