UK giant buys Sportsmans Warehouse owner
The Frasers Group plans to buy the Holdsport Group, which owns Sportsmans Warehouse, Outdoor Warehouse and Shelflife.
Frasers said it would buy Holdsport from Old Mutual Private Equity (OMPE) and Holdsport’s management.
Frasers is the owner of the popular UK chains House of Fraser, Sports Direct and many more. It is not linked to the Frasers luggage stores seen across South Africa.
Holdsport has operations in South Africa and Nambia and is known for owning the sporting goods chain Sportsmans Warehouse and camping retailer Outdoor Warehouse.
It also owns a premium sneaker store Shelflife.
For the financial year ended February 2024, Holdsport’s sales generated over R3 billion.
“Holdsport has demonstrated exceptional financial performance, with robust profit growth and strong cash flow, underscoring its value to Frasers’ strategic vision,” said Frasers in an update on the London Stock Exchange.
“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.”
Holdsport also has strong relationships with many international brands, such as Nike, Adidas, Asics, Hoka, and Garmin.
It also has a brand portfolio that includes First Ascent, Cape Storm, and OTG.
The acquisition also follows Frasers’ plan to diversify its product range and geographic reach and plans to utilise the company’s local market expertise.
The acquisition also includes Holdsport’s infrastructure, such as modern warehouses with capacity for growth and offices in Johannesburg and Cape Town, and a factory that supports local manufacturing and distribution.
“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,” said Michael Murray, CEO of Frasers Group.
“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.”
“We are delighted with Frasers’ acquisition of Holdsport and their inaugural investment into Southern Africa. Frasers is a leading international player in the sports retail industry, and this is a strong vote of confidence in our business and our country,” added Bradley Moritz, Holdsport, CEO.
“Frasers is a natural home for Holdsport, given their passion for sports, outdoor, brands and their focus on customer service and innovation.”
“I look forward to the energy and creativity that the combined businesses will bring, and I have no doubt that with Frasers’ skills, resources and innovation, Holdsport will grow from strength to strength. I also wish to thank OMPE for the strong partnership with them as owners of the business.”
The transaction is still subject to regulatory approvals and is expected to close in the coming months.
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