Frasers to buy South Africa's Holdsport; takes stake in Marks Electrical
By Michele Maatouk
Date: Tuesday 26 Nov 2024
(Sharecast News) - Mike Ashley's Frasers Group said on Tuesday that it has agreed to buy South African sporting, outdoor and recreation goods company Holdsport for an undisclosed sum.
The business is being bought from Old Mutual Private Equity (OMPE) and Holdsport's management.
Holdsport - which operates across retail, wholesale, manufacturing, distribution and e-commerce - is focused on the sport, outdoor, and recreation sectors across South Africa and Namibia.
It is home to Sportsmans Warehouse, a sporting goods chain in the region, and Outdoor Warehouse, an outdoor, camping, hiking, adventure retailer, "complementing Frasers Group's existing divisions".
It also owns South African premium trainer and streetwear store Shelflife.
Frasers said that with a total of 88 stores across South Africa and Namibia and a rapidly growing e-commerce offering, Holdsport's network will act as a platform to expand Sports Direct across the region.
"Frasers Group will utilise this strong position to grow its sport, fashion and brand distribution presence, furthering the group's commitment to international expansion," it said.
Frasers chief executive Michael Murray said: "Holdsport has built an incredible brand and reputation across Southern Africa, and we see potential in combining their regional expertise and own brands with our scale and resources, establishing a strong platform for growth.
"This acquisition is a great step forward for us, not only in expanding our footprint but also in enhancing our ability to meet the rising demand for high-quality sporting goods in a region with such dynamic growth."
Frasers said the deal is expected to close in the coming months.
Also on Tuesday, a regulatory filing showed that Frasers Group has purchased a 6.4% stake - just over 6.73m shares - in electricals retailer Marks Electrical.
A spokesman for Marks Electrical told The Standard: "The board welcomes Frasers as a shareholder in Marks Electrical.
"Their investment represents a vote of confidence and also demonstrates the significant upside potential in our business as we focus on building the UK's leading premium electrical retailer and delivering long term value creation."
At 1310 GMT, shares in Marks Electrical were up 2.5% at 51.74p.
Frasers also has stakes in Asos, AO World, Boohoo, Mulberry and Hugo Boss.
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