In November 2024, UK-based Frasers Group, known for brands including House of Fraser and Sports Direct, announced its acquisition of South Africa's leading sporting goods retailer, Holdsport Group.
This strategic move marks Frasers' inaugural entry into the South African market, aiming to leverage Holdsport's established presence to expand its global footprint.
Holdsport operates 88 stores across South Africa and Namibia, encompassing well-known retail chains such as Sportsmans Warehouse, Outdoor Warehouse, and premium streetwear retailer Shelflife.
In the financial year ending February 2024, Holdsport reported sales exceeding R3 billion, reflecting its robust market position.
The acquisition includes Holdsport's comprehensive infrastructure, featuring warehouses and offices in Johannesburg and Cape Town, as well as a manufacturing facility.
This extensive network is expected to serve as a platform for Frasers to introduce and expand its Sports Direct brand within the region.
Frasers Group's CEO, Michael Murray, expressed enthusiasm about the acquisition, stating on Investis, "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 transaction follows Frasers' recent investment in Malta-based Hudson Group, indicating a strategic focus on expanding its presence in diverse international markets.
The deal is currently pending customary regulatory approvals and is anticipated to be concluded in the coming months.
Andersen in South Africa, with extensive expertise in mergers and acquisitions, restructurings, corporate finance, capital raising and legal risk management, is proud to have acted as the South African tax adviser to Frasers Group in their successful acquisition of Holdsport and Sportsmans Warehouse.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
