Leading global retail group Frasers Group ("Frasers" or the "Group"), today announced the conclusion of an agreement for the acquisition of South Africa’s leading sporting, outdoor and recreation goods company, Holdsport Group (“Holdsport”) from Old Mutual Private Equity (“OMPE”) and Holdsport’s management.
Holdsport is a diversified business operating across retail, wholesale, manufacturing, distribution, and e-commerce, focused on the sport, outdoor, and recreation sectors across South Africa and Namibia. It is home to Sportsmans Warehouse, the leading elevated sporting goods chain in the region, and Outdoor Warehouse, an outdoor, camping, hiking, adventure retailer – complementing Frasers Group’s existing divisions. It also owns Shelflife, South Africa’s premium sneaker and streetwear store. For Holdsport's financial year ended February 2024, sales generated exceeded R3 billion (GBP130 million). Holdsport has demonstrated exceptional financial performance, with robust profit growth and strong cash flow, underscoring its value to Frasers’ strategic vision.
With a total of 88 stores across South Africa and Namibia and a rapidly growing e-commerce offering, Holdsport’s network will act as a platform to expand Sports Direct across the region. Frasers Group will utilise this strong position to grow its sport, fashion and brand distribution presence, furthering the Group’s commitment to international expansion.
Holdsport 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 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.
This deal comes 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.
Michael Murray, 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.”
Jacci Myburgh and Chumani Kula, Co-Heads of Old Mutual Private Equity, 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. Furthermore, the transaction reaffirms our expertise of investing alongside strong and aligned management teams in high quality businesses in order to inspire an ownership and growth mindset to achieve an attractive investment outcome for our investors, whilst ultimately ensuring the right home for the business and the management team. We wish Frasers and the Holdsport management team all the best for their next chapter.”
Bradley Moritz, Holdsport, CEO, commented: “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. I also wish to thank OMPE for the strong partnership with them as owners of the business. Their commercial perspective and high-quality input have been instrumental to Holdsport’s ongoing success.”
The transaction is subject to customary regulatory approvals and is expected to close in the coming months.