Frasers acquires South African sports retailer Holdsport

Frasers Group has expanded its global footprint through acquiring South African sporting, outdoor and recreation goods company, Holdsport.It acquired the retailer for an undisclosed sum from Old Mutual Private Equity (OMPE) and Holdsport’s management, and the transaction is expected to close in the coming months.

Holdsport operates across retail, wholesale, manufacturing, distribution, and e-commerce, focusing on the sport, outdoor, and recreation sectors across South Africa and Namibia. 

It is home to sporting goods chain Sportsmans Warehouse, and Outdoor Warehouse, an outdoor, camping, hiking, adventure retailer. 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 (£130m), and reported “robust” profit growth and strong cash flow.

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

In addition, 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 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.

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.”

Bradley Moritz, Holdsport CEO, added: “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.”