LONDON - Frasers Group PLC, the global retail conglomerate, has announced the acquisition of Holdsport Group, a prominent South African retailer of sporting, outdoor, and recreation goods. The deal, which is still subject to regulatory approvals, is expected to enhance Frasers Group's international presence and diversify its geographic reach.
Holdsport operates across South Africa and Namibia through its retail, wholesale, manufacturing, distribution, and e-commerce channels. The group, which includes Sportsmans (NASDAQ:SPWH) Warehouse and Outdoor Warehouse, reported sales exceeding R3 billion (approximately GBP130 million) for the financial year ended February 2024. The acquisition also encompasses Holdsport's infrastructure, which consists of modern warehouses, offices in Johannesburg and Cape Town, and a manufacturing facility.
Michael Murray, CEO of Frasers Group, expressed optimism about the acquisition, highlighting Holdsport's strong brand and regional expertise as valuable assets that align with Frasers' strategic vision for growth. He emphasized the potential for combining Holdsport's local market knowledge with Frasers' resources to meet increasing demand for quality sporting goods in the region.
Old Mutual (LON:OMU) Private Equity (OMPE) and Holdsport's management, the sellers in this transaction, lauded the quality of Holdsport's business and its strong platform. They expressed confidence in Frasers Group as a global retailer that will continue to foster Holdsport's success.
The acquisition follows Frasers Group's recent investment in the Malta-based Hudson (NYSE:HUD) Group, signaling the company's ongoing commitment to expanding its international footprint.
Bradley Moritz, CEO of Holdsport, welcomed the acquisition, stating that Frasers Group, with its focus on customer service and innovation, is a natural fit for Holdsport. He also acknowledged OMPE's contribution to Holdsport's success during their ownership.
This acquisition is part of Frasers Group's broader strategy to expand its brand ecosystem globally, providing consumers with access to leading sports, premium, and luxury brands.
The transaction is anticipated to close in the coming months, pending customary regulatory approvals. The financial terms of the deal have not been disclosed.
This report is based on a press release statement from Frasers Group PLC.
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