What: Frasers Group acquires South African sportswear retailer Holdsport Group for undisclosed sum while taking £3m stake in Marks Electricals, expanding its international footprint across South Africa and Namibia.

Why it is important: The acquisition demonstrates Frasers Group's strategic pivot towards emerging markets, following its successful expansion model seen with Hudson Malta, while simultaneously diversifying its UK portfolio through strategic investments.

Frasers Group has made a significant move in its international expansion strategy by acquiring Holdsport Group, a prominent South African retailer operating across retail, wholesale, manufacturing, distribution and ecommerce sectors. The company, which generated revenues exceeding £130 million in its latest financial year, brings 88 stores across South Africa and Namibia to Frasers' growing portfolio. This acquisition will facilitate Sports Direct's expansion across both regions, leveraging Holdsport's established presence and regional expertise. Simultaneously, Frasers has invested £3 million in British retailer Marks Electricals, securing a 6.4% stake in the company, which remains majority-controlled by founder Mark Smithson with a 70% holding. The dual investment strategy reflects Frasers' balanced approach to growth, combining significant international expansion with strategic domestic investments. Group CEO Michael Murray emphasised the potential in combining Holdsport's regional expertise and own brands with Frasers' scale and resources, positioning the group to capitalise on the rising demand for high-quality sporting goods in the dynamic Southern African market.

IADS Notes: The acquisition of Holdsport Group in November 2024 represents a significant milestone in Frasers Group's aggressive international expansion strategy. This move builds upon the company's earlier stake acquisition in Hudson Malta in October 2024, which provided access to 36 African countries , demonstrating Frasers' systematic approach to establishing a strong presence in the African market. The Holdsport deal, with its £130 million revenue and 88-store network across South Africa and Namibia, complements Frasers' broader portfolio development strategy, which has included strategic acquisitions such as Matches for £52 million in December 2023  and the Dutch chain Twin Sport in April 2024 . CEO Michael Murray's emphasis on combining regional expertise with global resources echoes the successful approach seen in the Hudson Malta partnership , where local market knowledge was leveraged to enhance retail operations. This pattern of expansion showcases Frasers' evolution from a UK-centric retailer to a global player capable of managing diverse retail formats across multiple continents.

Frasers acquires South African sportswear retailer