Frasers Group, the parent of UK-based Sports Direct, has completed an agreement to acquire South Africa-based Holdsport Group, whose portfolio includes retail, wholesale, manufacturing, distribution and e-commerce businesses, from Old Mutual Private Equity and Holdsport’s management.
The transaction is subject to customary regulatory approvals and is expected to close in the coming months.
“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,” offered Frasers Group CEO Michael Murray. “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.”
For Holdsport’s financial year ended February 2024, sales exceeded R3 billion (GBP130 million).
“Holdsport has demonstrated exceptional financial performance, with robust profit growth and strong cash flow, underscoring its value to Frasers’ strategic vision, the Group said.
“Holdsport is a diversified business operating across retail, wholesale, manufacturing, distribution, and e-commerce, focused on the sport, outdoor, and recreation sectors across South Africa and Namibia,” the Group said in a media release. “It is home to Sportsmans Warehouse, the leading elevated sporting goods chain in the region, and Outdoor Warehouse, an outdoor, camping, hiking, adventure retailer—complementing Frasers Group’s existing divisions.”
The company also owns Shelflife, South Africa’s sneaker and streetwear store.
“With a total of 88 stores across South Africa and Namibia and a rapidly growing e-commerce offering, Holdsport’s network will act as a platform to expand Sports Direct across the region. Frasers Group will utilise this strong position to grow its sport, fashion and brand distribution presence, furthering the Group’s commitment to international expansion,” the Group suggested.
Holdsport reportedly has well-established relationships with major international brands, including Nike, Adidas, Asics, Hoka, and Garmin, supported by its brand portfolio, including First Ascent, Cape Storm, and OTG.
The acquisition is said to align with Frasers Group’s plans to diversify its product range and geographic reach while leveraging Holdsport’s established market presence and local market expertise.
The acquisition also includes Holdsport’s infrastructure, including warehouses with growth capacity, offices in Johannesburg and Cape Town and a factory that supports local manufacturing and distribution.
Bradley Moritz, the CEO of Holdsport, commented: “We are delighted with Frasers’ acquisition of Holdsport and their inaugural investment into Southern Africa. Frasers is a leading international player in the sports retail industry, and this is a strong vote of confidence in our business and our country.
“Frasers is a natural home for Holdsport, given their passion for sport, outdoor, brands, and their focus on customer service and innovation. I look forward to the energy and creativity that the combined businesses will bring, and I have no doubt that with Frasers’ skills, resources and innovation, Holdsport will grow from strength to strength.
“I also wish to thank OMPE for the strong partnership with them as owners of the business. Their commercial perspective and high-quality input have been instrumental to Holdsport’s ongoing success,” concluded Moritz.
This deal came shortly after Frasers announced a significant investment in the Malta-based retail business Hudson Group, which operates sport, lifestyle and fashion stores and distributes major global brands across 36 countries in Europe and North Africa.
Image courtesy Holdsport Group
