Holdsport, the owner of Sportsmans Warehouse and Outdoor Warehouse, has been acquired by the UK’s Frasers Group for an undisclosed sum.
Frasers Group, the global retail powerhouse known for its extensive portfolio of sports, premium, and luxury brands, has officially entered the South African market. On Tuesday it announced the conclusion of an agreement for the acquisition of Holdsport from Old Mutual Private Equity (OMPE) and Holdsport’s management.
Retailer Frasers Group, based in the UK, encompasses a diverse portfolio of iconic names such as House of Fraser, Flannels, Evans Cycles, and GAME. It also distributes internationally renowned brands like Nike, Adidas and Puma.
Michael Murray, the CEO of Frasers Group, said: “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. 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.”
Holdsport’s retail network provides Frasers Group with a launchpad to introduce its flagship brand Sports Direct into the South African market.
Holdsport was previously listed on the JSE during the years 2011-2017 and was a subsidiary of Long4Life from 2017 to 2022 which was also listed on the JSE and was subsequently delisted by Old Mutual Private Equity in 2022.
In its most recent financial year ending February 2024, Holdsport reported sales exceeding R3 billion with robust profit growth and financial health. It operates 88 stores across South Africa and Namibia.
The company also owns Shelflife, South Africa’s premium sneaker and streetwear store. Additionally, its Performance Brands division designs, manufactures, and distributes its own outdoor and recreation products, including well-known local labels such as First Ascent, Cape Storm and OTG.
“Holdsport has demonstrated exceptional financial performance, with robust profit growth and strong cash flow, underscoring its value to Frasers’ strategic vision,” Frasers said in a statement.
The acquisition also includes Holdsport’s infrastructure, including modern warehouses with capacity for growth and offices in Johannesburg and Cape Town, as well as a factory that supports local manufacturing and distribution.
Jacci Myburgh and Chumani Kula, the co-heads of OMPE, said: “Holdsport is an iconic South African business that has been well loved and regularly supported by many South African households over the years. We are proud to have been the custodian of such a strong business, with a great platform, offering well-known local and international brands. The acquisition by Frasers, a well-respected global retailer, is a testament to the quality of the Holdsport offering and demonstrates confidence in the South African economy.”
Bradley Moritz, Holdsport, CEO, said: “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.
The acquisition also comes on the heels of Frasers Group’s investment in the Malta-based Hudson Group, a retail business operating across Europe and North Africa.
The deal is still subject to regulatory approvals and is expected to close in the coming months.
BUSINESS REPORT