Frasers Group signs deal to acquire Germany’s SportScheck
Frasers Group continues to make acquisitions and it hasn’t only got it sights set on the UK. On Tuesday the company announced that it entered into a binding agreement with Signa Retail Department Store Holding to acquire SportScheck, one of Germany’s top sports retailers. No purchase price was disclosed.
The company said completion will be subject to merger control clearance and should close in Q1 2024.
The deal will help it grow its presence in one of the biggest sports markets in Europe and further intensifies its rivalry with another UK retail giant, JD Sports
Seventy-five-year-old SportScheck has 34 stores in prime city locations across Germany, with annual revenue of around €350 million. It sees over 13 million visitors a year.
Frasers said the operation will be able to benefit from the new parent’s Elevation Strategy, “which has driven strong performance across the business by investing in store concepts, digital capabilities and strengthened brand relationships”.
Sports DirectNikeAdidas
The UK firm’s CEO, Michael Murray, said of the purchase: “Acquiring the leading sporting goods retailer in Germany is a big step in our journey to becoming the number one sports retailer in EMEA — and we are delighted to do this with the full support of major global brand partners, Adidas and Nike. Growing and expanding our Sports business is a key focus area in becoming an international retail business. The German market represents a huge opportunity for us, and we look forward to bringing our experience, resources and relationships to strengthen the SportScheck business.”
Interestingly, there was also a statement from Bjørn Gulden, CEO of Adidas. He said: “Michael’s elevation of Frasers Group and Sports Direct has been impressive. The acquisition of SportScheck is another big commitment to the sports industry and a natural evolution in their strategy of becoming a global player. We are committed and excited to support Sports Direct on their journey.”
