Frasers Group snaps up 15 fashion brands from rival JD Sports

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Frasers Group has struck a £47.5m deal to acquire a string of fashion brands from its sportswear rival JD Sports.

Mike Ashley’s retail group has agreed to buy 15 brands, including Base Childrenswear, Pretty Green, Tessuti and Watch Shop.

Frasers said the deal would be funded by existing cash resources.

Deals were completed on exchange for eight of the brands: Base Childrenswear, Clothingsites, Kids Cavern, Missy Empire, Nicholas Deakins, Pretty Green, Prévu and WatchShop.

Frasers said it expected to formally complete the acquisition of the remaining seven businesses – Choice, Cricket, Giulio, Rascal Clothing, Scotts, Tessuti, Topgrade Sportswear – in “early 2023”.

The latest financial accounts for the 15 businesses showed that they had gross assets of approximately £239m and delivered a pre-tax profit of around £5.3m.

JD Sports said: “The divestment of these businesses will allow the group to focus more fully on the opportunities across the rest of the group, in particular the international and digital expansion of the group’s core premium sports fashion fascias.”

It added that the deals would likely result in a non-cash exceptional charge of approximately £100m in the year to January 28.

For Frasers, the deal marks the latest in a flurry of acquisitions it has completed this year.

The retail conglomerate, which owns businesses including House of Fraser, Flannels, Sports Direct, Jack Wills and Sofa.com, has been actively expanding its stable throughout 2022.

Frasers, now run by Ashley’s son-in-law Michael Murray, has rescued online players I Saw It First, Missguided and Studio from administration.

Last month, it bought Gieves & Hawkes, one of London’s oldest bespoke tailors.