Frasers Group Expands into Africa with Holdsport Acquisition

Frasers Group’s buying spree in 2024 continues with its latest move: the acquisition of South Africa’s Holdsport Group, a leading player in sporting, outdoor, and recreation goods across Southern Africa.

While the purchase price hasn’t been disclosed, the acquisition cements Frasers’ strategy to expand its sports retail empire into Africa, complementing its recent investment in Hudson Malta, a sport and fashion retailer with operations in 36 African countries.

Holdsport: A Strategic Addition

Holdsport operates across multiple segments, including retail, wholesale, manufacturing, distribution, and a rapidly growing e-commerce platform. The group’s retail network spans 88 stores across South Africa and Namibia, anchored by well-known brands such as:

• Sportsmans Warehouse: A premium sporting goods retailer.
• Outdoor Warehouse: A leading camping and adventure goods store.
• Shelflife: South Africa’s premier sneaker and streetwear retailer.

In its financial year ending February 2024, Holdsport generated sales exceeding R3 billion (£130 million), showcasing robust profit growth and strong cash flow.

The company also boasts partnerships with major international brands like Nike, adidas, Asics, Hoka, and Garmin, while developing its in-house labels such as First Ascent, Cape Storm, and OTG.

Why This Acquisition Matters

Frasers Group CEO Michael Murray said the deal aligns with the group’s goals of diversifying its product range and expanding its geographic reach.

“Holdsport has built an incredible brand and reputation across Southern Africa. Combining their regional expertise with our scale and resources will establish a strong platform for growth,” Murray said.

The acquisition also includes critical infrastructure:

• Modern warehouses with capacity for future growth.
• Offices in Johannesburg and Cape Town.
• A factory supporting local manufacturing and distribution.

These assets provide Frasers with a strong foothold in South Africa’s retail sector, positioning it to meet the growing demand for high-quality sporting goods in a region with dynamic growth potential.

Confidence in South Africa’s Economy

Jacci Myburgh and Chumani Kula, co-heads of Old Mutual Private Equity, Holdsport’s former owner, praised the acquisition as a vote of confidence in South Africa’s economy.

“Holdsport is an iconic South African business, loved by many households. Frasers’ acquisition demonstrates the quality of the Holdsport offering and its potential for growth,” they said.

A Broader Strategic Vision

This move follows Frasers’ recent acquisitions across Europe and Africa, underscoring its intent to build a global presence in the sporting goods retail market.

Frasers Group’s purchase of Holdsport is subject to regulatory approval and is expected to close in the coming months.

Impact on the Sporting Goods Market

The acquisition marks a significant shift in Africa’s sporting goods sector, creating opportunities for local and international brand collaboration. It also reinforces South Africa’s importance as a strategic market for global retail players.

With Frasers Group’s resources and Holdsport’s established market presence, the region is poised for exciting developments in sports, outdoor, and recreation retail.