Frasers Group announced that it has reached a binding agreement with Signa Retail Department Store Holding GmbH to acquire German sports retailer SportScheck. Signa had once acquired SportScheck from the Otto Group. The most recent news surrounding Signa already suggested that some of its brands might be divested from the portfolio.
The acquisition will allow Frasers to expand its presence in Germany, one of the largest sports markets in Europe and an important focus area for the sports segment. SportScheck has more than 75 years of experience in sports retailing, with 34 stores in prime city locations across Germany, sales of around €350 million and a loyal customer base of more than 13 million visitors per year.
As part of Frasers, SportScheck will benefit from the group’s Elevation Strategy, which has led to strong performance across the business through investment in store concepts, digital capabilities and strengthened brand relationships.
“Acquiring the leading sporting goods retailer in Germany is a big step in our journey to becoming the number one sports retailer in EMEA – and we are delighted to do this with the full support of major global brand partners, Adidas and Nike,” Michael Murray, CEO of Frasers Group, commented. “Growing and expanding our Sports business is a key focus area in becoming an international retail business. The German market represents a huge opportunity for us, and we look forward to bringing our experience, resources and relationships to strengthen the SportScheck business.”
Frasers-owned retail chain Sports Direct, Europe’s largest retailer of sports and fitness footwear, apparel and equipment, is a strategic partner for global sports brands such as Nike and Adidas and therefore has the backing to support SportScheck’s expansion strategy. “Michael’s elevation of Frasers Group and Sports Direct has been impressive,” said Bjørn Gulden, CEO of Adidas. ”The acquisition of SportScheck is another big commitment to the sports industry and a natural evolution in their strategy of becoming a global player.”
The closing of the transaction is subject to merger control clearance. Frasers expects the transaction to close in the first quarter of 2024 and will update the market soon.
