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Frasers Group PLC confirmed on Tuesday its acquisition of Holdsport Group from Old Mutual Ltd. The Shirebrook, England-based owner of multiple retailers, including the House of Fraser, Sports Direct and Flannels, purchased Holdsport for an undisclosed sum, marking Frasers’ first investment in Southern Africa. Holdsport is a leading outdoor and recreational goods company in the region, with sales exceeding £130 million in the 2024 financial year. The firm has more than 88 stores across South Africa and Namibia, and a growing e-commerce presence. It owns Sportsman’s Warehouse, South Africa’s leading sports retailer, alongside camping supply store Outdoor Warehouse and sneaker chain Shelflife. The strategy behind the latest acquisition lies in ‘the group’s commitment to international expansion’, Frasers said. The company added: ‘Holdsport’s network will act as a platform to expand Sports Direct across the region’. This network includes distribution deals with international brands such as Nike Inc and adidas AG, alongside an own-brand portfolio and existing infrastructure, namely offices in Johannesburg and Cape Town and a local factory. Frasers Chief Executive Officer Michael Murray said the deal was an opportunity for the firm to ‘to meet the rising demand for high-quality sporting goods in a region with such dynamic growth.’ Murray’s enthusiasm was shared by Jacci Myburgh and Chumani Kula, co-heads of Holdsport’s ex-owner Old Mutual Private Equity: ‘The acquisition by Frasers, a well-respected global retailer, is a testament to the quality of the Holdsport offering and demonstrates confidence in the South African economy’. Holdsport CEO Bradley Moritz welcomed the merger as ‘ a strong vote of confidence in our business and our country’. As of Monday, Frasers has a 6.4% stake in UK appliance retailer Marks Electrical, adding to a share portfolio that includes boohoo Group PLC, Asos PLC, Currys PLC and Hugo Boss AG. The Holdsport deal follows Frasers’s investment into the Malta-based Hudson Group, which owns sport, fashion and lifestyle brands operating in Europe and North Africa. Frasers shares were down 0.2% at 760.50 pence each on Tuesday afternoon in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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