Global retail group Frasers Group has announced the conclusion of an agreement to acquire Holdsport Group, one of South Africa’s leading sporting, outdoor and recreation goods companies, from Old Mutual Private Equity (“OMPE”) and Holdsport’s management.
Holdsport is a diversified sports business in South Africa and Namibia. It is home to Sportsmans Warehouse and Outdoor Warehouse, which complement Frasers Group’s existing businesses. Holdsport also owns Shelflife, South Africa’s premium sneaker and streetwear retailer. For the year ended February 2024, Holdsport generated sales over R3 billion (€155.7m) and demonstrated exceptional financial performance.
The transaction is subject to customary regulatory approvals and is expected to close in the coming months.
Holdsport has 88 stores across two countries
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 utilize this strong position to grow its sport, fashion and brand distribution presence, furthering the Group’s commitment to international expansion.
The acquisition of Holdsport follows Frasers’ investment in Hudson Group, a Malta-based retailer of major global brands in Europe and North Africa. Last week, Frasers, the largest investor in Boohoo, called on the online fashion retailer to remove Mahmud Kamani as a director.
Frasers has money to spend. Earlier in 2024, the group expanded its presence in Australia and New Zealand by acquiring a 14.65-percent stake in Accent Group Limited. After that, Frasers acquired a mix of online and physical Dutch sports retailers in the Benelux region in the EMEA with the ambition to become the largest multi-brand sports retailer in the Benelux region.
Frasers communicates that Holdsport has well-established relationships with major international brands, including Nike, Adidas, Asics, Hoka and Garmin, supported by their own brand portfolio, including First Ascent, Cape Storm and OTG.
Aligned with Frasers’ plan to diversify its product range
The acquisition of Holdsport aligns with Frasers Group’s plans to diversify its product range and geographic reach while leveraging Holdsport’s established market presence and local market expertise.
Holdsport’s portfolio of assets also includes Performance Brands, a wholesale, manufacturing, and distribution business focused on the sports, outdoor, and recreation sectors. The group designs and manufactures its own brands and is additionally the Southern African representative for several leading international sports equipment brands.
The acquisition also includes Holdsport’s infrastructure, including modern warehouses with growth capacity, offices in Johannesburg and Cape Town, and a factory that supports local manufacturing and distribution.
Michael Murray, CEO of Frasers Group, 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.”
