The acquisition agreement was concluded with Old Mutual Private Equity and the management of Holdsport, which specialises in sports, outdoor, and recreational products.
Holdsport operates a multifaceted business with interests in retail, wholesale, manufacturing, distribution, and online sales, primarily serving the sports and outdoor recreation markets in South Africa and Namibia.
The company's portfolio includes Sportsmans Warehouse, which focuses on sporting goods and Outdoor Warehouse, a retailer catering to outdoor activities such as camping and hiking. It also owns Shelflife, which is a South African high-end sneaker and streetwear outlet.
For the financial year ending February 2024, Holdsport's revenue surpassed R3bn ($165.22m), which Frasers Group says showcases its strong financial performance with significant profit growth and solid cash flow generation.
Following the acquisition, Holdsport's existing network of 88 stores across South Africa and Namibia, along with its burgeoning online presence, it is poised to serve as a foundation for Frasers Group to extend the reach of Sports Direct within the region.
Frasers plans to leverage Holdsport's strategic position to enhance its influence in sports, fashion, and brand distribution sectors internationally.
Holdsport maintains partnerships with leading global brands such as Nike, adidas, Asics, Hoka, and Garmin and it has also developed its own brands including First Ascent, Cape Storm, and OTG.
The acquisition is consistent with Frasers Group's strategy to broaden its product offerings and geographical footprint by tapping into Holdsport's already established market presence and expertise across South Africa and Namibia.
The deal also includes Holdsport's warehouses with expansion capabilities and offices in Johannesburg and Cape Town. Additionally, it encompasses a factory that bolsters local manufacturing and distribution efforts.
Frasers Group CEO 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."
The completion of the transaction is pending standard regulatory approval processes and is anticipated to be finalised in the months ahead.
In August this year, Frasers Group announced a strategic investment in Accent Group Limited, acquiring a 14.65% stake in the Australian and New Zealand performance and lifestyle retail and distribution company.
Recently, Frasers Group has been engaged in a feud with UK retailer Boohoo with the latter refusing to engage in taunts from Frasers demanding the resignation of its co-founder Mahmud Kamani.
Boohoo has faced strong criticism from its shareholder Frasers over what it describes as "poor refinancing, a lack of transparency, disappointing results, and additional supply chain issues".
