UK-based retail and sports equipment company Frasers Group has concluded a deal to acquire South African sporting, outdoor and recreation goods company Holdsport Group from private equity subsidiary Old Mutual Private Equity (OMPE) and Holdsport’s management.

Holdsport is a diversified business operating across retail, wholesale, manufacturing, distribution and e-commerce. It is focused on the sport, outdoor and recreation sectors across South Africa and Namibia.

It owns sporting goods chain Sportsmans Warehouse and outdoor equipment retailer Outdoor Warehouse, which complements Frasers Group’s existing divisions. It also owns shoe retail chain Shelflife.

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 November 26 statement.

“With 88 stores across South Africa and Namibia and a growing e-commerce offering, Holdsport’s network will act as a platform to expand Sports Direct across the region. Frasers Group will use this strong position to grow its sport, fashion and brand distribution presence, furthering the Group’s commitment to international expansion,” the group said.

The acquisition also includes Holdsport’s infrastructure, which includes modern warehouses with capacity for growth and offices in Johannesburg and Cape Town, as well as a factory that supports local manufacturing and distribution.

Holdsport also has well-established relationships with major international brands, including Nike, Adidas, Asics, Hoka and Garmin, supported by their own brand portfolio including First Ascent, Cape Storm and OTG.

“The acquisition aligns 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 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,” said Frasers Group CEO Michael Murray.

“This not only expands our footprint but also enhances our ability to meet the rising demand for high-quality sporting goods in a region with such dynamic growth.”

“Holdsport is an iconic South African business that has been well loved and regularly supported by many South African households over the years. It is a strong business with a great platform, offering well-known local and international brands. The acquisition by Frasers is a testament to the quality of the Holdsport offering and demonstrates confidence in the South African economy,” said OMPE co-heads Jacci Myburgh and Chumani Kula.

The transaction is subject to customary regulatory approvals and is expected to close in the coming months.

Further, this deal follows shortly after Frasers announced a significant investment into the Malta-based retail business Hudson Group, which operates sport, lifestyle and fashion stores and distribution of major global brands across 36 countries in Europe and North Africa, the group said.