Frasers Group plc, the parent company of UK-based sports retailer Sports Direct, entered into a binding agreement with Signa Retail Department Store Holding GmbH to acquire SportScheck, one of the top sports retailers in Germany.
The company said the acquisition would enable Frasers to grow its presence in Germany, one of the biggest sports markets in Europe and a key focus area for the sports segment.
Frasers shared in a release that SportScheck has over 75 years of expertise in sports retail, with 34 stores in prime city locations across Germany, approximately €350 million in revenue and a loyal customer base of over 13 million visitors per year.
As part of Frasers, SportScheck is expected to benefit from the Group’s Elevation Strategy, which Frasers said has driven strong performance across the business by investing in store concepts, digital capabilities and strengthened brand relationships.
The company said that Sports Direct is a strategic partner for global sports brands, including Nike and Adidas, and suggested that it has support to assist in its international expansion strategy.
“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,” explained Michael Murray, CEO of Frasers Group. “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.”
Bjørn Gulden, CEO, Adidas AG, added, “Michael’s elevation of Frasers Group and Sports Direct has been impressive. The acquisition of SportScheck is another big commitment to the sports industry and a natural evolution in their strategy of becoming a global player. We are committed and excited to support Sports Direct on their journey.”
Completion 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 “in due course.”
