15th Apr 2025 10:16
(Alliance News) - Frasers Group PLC reported on Tuesday that it has entered into a 25-year retail agreement with Accent Group Ltd, raising its stake to 19.57%.
The agreement focuses on the launch of the Sports Direct brand across Australia and New Zealand.
Frasers is increasing its stake in Accent by 5%, with subscription proceeds of approximately GBP29 million being used to fund the initial launch of Sports Direct operations in Australasia, "demonstrating confidence in its growth potential."
The Shirebrook, England-based firm which owns multiple retailers, including House of Fraser, Sports Direct and Flannels said that the growth across Australasia will support the company's objective of opening 100 stores in the region.
Accent plans to have an initial roll-out of around 50 Sports Direct stores over the first six years.
Frasers Chief Executive Officer Michael Murray said: "This reaffirms our commitment to drive growth of the Sports Direct brand internationally and marks a significant step forward in our ambition to becoming the leading global sporting goods retailer."
Accent is a Melbourne, Australia-based retailing company that distributes lifestyle and sports footwear in Australia and New Zealand.
Frasers said it will work closely with Accent as its largest shareholder, to "continue expanding its existing presence across the region's sports retail market."
The partnership will also offer Accent access to brands owned by Frasers, including Everlast and Slazenger as well as strengthening Frasers' brand relationships with other sports brands such as Nike and Adidas.
Furthermore, Accent has acquired Frasers' discount online fashion marketplace, MySale, extending Accent's online presence and consolidating Frasers' Australian operations.
In a separate statement, Accent said that for the next three years, Frasers will not be able to buy more than 26% of Accent.
Accent added that the completion of each of the arrangements within the agreement is expected to occur on May 12.
Accent Chief Executive Daniel Agostinelli said: "The rollout has key brand support and will leverage the proven operating model, combined capability and global brand relationships enabled by the Frasers and Accent alliance."
Frasers shares rose 3.2% to 635.00 pence in London on Tuesday morning.
Accent shares closed up 4.7% AUD1.90 in Sydney.
By Olivia Mason-Myhill, Alliance News reporter
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