17th Oct 2023 08:26
(Alliance News) - Frasers Group PLC on Tuesday said it agreed to acquire Sportscheck, "one of the leading sports retailers in Germany", from Signa Retail Department Store Holding GmbH for an undisclosed fee.
Frasers, which is based in Shirebrook, England and owns House of Fraser, Sports Direct and Flannels retail chains, said the acquisition will 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 said completion of the transaction is subject to merger control clearance. It expects closure of the deal to occur in the first quarter of 2024, saying it will update the market in "due course".
SportScheck has over 75 years of expertise in sports retail, Frasers said, with 34 stores in "prime city locations" across Germany, revenue of around EUR350 million and a customer base of over 13 million visitors per year.
Frasers said SportScheck will benefit from Frasers's 'elevation strategy', which has "driven strong performance across the business by investing in store concepts, digital capabilities and strengthened brand relationships".
Frasers also noted that SportScheck is a strategic partner for global brands such as Nike Inc and Adidas AG.
"Acquiring the leading sporting goods retailer in Germany is a big step in our journey to becoming the number one sports retailer in [Europe, the Middle East and Africa] - and we are delighted to do this with the full support of major global brand partners, Adidas and Nike," said Frasers Chief Executive Officer Michael Murray.
"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."
Adidas CEO Bjorn Gulden 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."
Shares in Frasers were down 0.3% to 803.00 pence each in London on Tuesday early morning.
On Monday, Frasers lifted its stakes in online clothing retailers Asos PLC and boohoo Group PLC, according to filings.
It increased its holding in Asos to 22.8% from 19.7%, and raised its stake in boohoo to 15.1% from 13.4%.
Both online fashion businesses have suffered share price declines over the past year, arguably providing an attractive buying opportunity.
Shares in Asos have fallen 25% in the past year, while boohoo shares have lost 22%.
Asos was marginally down at 386.86 pence early Tuesday, while boohoo was down 0.2% at 30.28p.
By Greg Rosenvinge, Alliance News reporter
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