Frasers Group offloaded its U.S. retail businesses trading under the banners Bob’s Stores and Eastern Mountain Sports for $70 million in cash to GoDigital Media Group (GDMG).
Frasers Group said the funds from the sale would go into its general working capital pool.
Frasers Group, the parent of Sports Direct, said, “The Bobs and EMS store estate does not include any of the new elevated stores which are core to the FG Elevation strategy. The disposal of these non-core businesses allows FG to have an even greater focus on delivering its Elevation strategy by focusing on store experience, digital and product. The board of FG is grateful to the staff at Bobs and EMS for their loyal service and wishes these businesses every success for the future.”
Frasers Group, then trading as Sports Direct International, acquired Bob’s Stores and Eastern Mountain Sports in April 2017 as part of its bid to boost its U.S. portfolio.
The sale comes as Michael Murray was appointed as the new Frasers Group CEO on May 1.
GoDigital Media Group, headquartered in Los Angeles, focuses on intellectual property rights management through divisions in music, video networks and brands.
In a separate statement, GoDigital Media said that as part of the acquisition, GoDigital has augmented its organization by adding 900 employees, 42 stores, and a warehouse and fulfillment center.
“The acquisition of EMS and Bob’s is a major step in our strategy to generate synergy between content, community, and commerce,” says Jason Peterson, GoDigital’s Chief Executive Officer. “The outdoor adventure and work markets perfectly align with our business model to serve specialized audiences with huge potential. We seek to sell through a combination of owned and operated e-commerce storefronts, third-party digital storefronts, and traditional retail partners. This transaction also presents a great opportunity to apply our prowess in product development, supply chain, and e-commerce across all of our brands.”
Dave Barton, EMS and Bob’s president and CEO, commented: “I am extremely excited that we found the right investors who see the vast potential in our company and have the vision and expertise to help us unlock it. I am confident that our hard work to create a solid foundation will quickly allow us to execute their strategy. I want to thank our partners for their continued support, especially during these very challenging times triggered by the pandemic.”
GoDigital said its leadership team consists of c-suite executives with in-depth retail expertise from global brands such as BCBG, Gap, and Next.
With Carlos Cruz, Brands Senior Vice President, as the leader of GoDigital’s commerce team, “He and his team will bring strength, support, and invaluable experience to the current senior management team within EMS and Bob’s,” added Peterson. “Both companies’ teams have been retained and are pivotal to the continuity of the businesses. They are expected to benefit from our digital expertise, content and community platforms, technology backbone, and global footprint for sourcing and distribution.”
Dentons UK & Middle East LLP represented Frasers and Stubbs Alderton & Markiles LLP represented GoDigital. The transaction’s progress was coordinated by Zeevo Group LLC.
