Frasers Group has snapped up South African sportswear retailer Holdsport Group for an undisclosed sum on the same day it took a £3m stake in British brand Marks Electricals.
The Sports Direct and House of Fraser owner announced the acquisition of Holdsport today, which operates across retail, wholesale, manufacturing, distribution and ecommerce and has operations in South Africa and Namibia.
Holdsport’s most recent set of financial results for the year to February 2024 saw the retailer post revenues of more than R4bn (£130m).
The group has 88 stores across South Africa and Namibia, and will help Frasers Group expand Sports Direct’s presence across both regions.
Frasers also snapped up a £3m stake in Marks Electricals this morning. The deal gives Frasers a 6.4% stake in the electricals specialist which is still under the majority control of founder Mark Smithson who retains a 70% controlling stake.
In a statement, Frasers Group boss 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.”
In a joint statement, Jacci Myburgh and Chumani Kula, co-heads of Old Mutual Private Equity which previously owned Holdsport, said: “Holdsport is an iconic South African business that has been well loved and regularly supported by many South African households over the years.
“We are proud to have been the custodian of such a strong business, with a great platform, offering well-known local and international brands.
“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.
“Furthermore, the transaction reaffirms our expertise in investing alongside strong and aligned management teams in high-quality businesses in order to inspire an ownership and growth mindset to achieve an attractive investment outcome for our investors, whilst ultimately ensuring the right home for the business and the management team.
“We wish Frasers and the Holdsport management team all the best for their next chapter.”
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