Mike Ashley’s Frasers Group has taken a significant step towards its goal of becoming a leading global sports retailer by acquiring a 14.65 per cent stake in Accent, a prominent retail and distribution business operating in Australia and New Zealand. The £85 million investment, described as strategic by Frasers, will enable the FTSE 100 company to propose a director to join Accent’s board, solidifying the partnership between the two entities.
Accent, which reported impressive sales of £861 million from its network of nearly 900 stores and online platforms in the most recent financial year, is responsible for distributing 34 sports and lifestyle brands, including popular names such as Hoka, Vans, and Dr Martens. The stake, previously held by businessman Brett Blundy, was cashed in as part of the deal.
Frasers Group CEO Michael Murray expressed enthusiasm about the investment, highlighting its significance in the company’s international expansion plans. He praised Accent for creating an “incredible ecosystem of sports and lifestyle brands” in the region. Accent CEO Daniel Agostinelli echoed Murray’s sentiments, emphasising the potential for mutual opportunities and the excitement surrounding the new relationship between the two organisations.
This move is not Frasers’ first foray into the Australian market. In November 2022, the company completed the acquisition of Mysale, a flash sales site, to expand its presence in the region. Frasers has also been actively acquiring businesses globally, with recent additions including Dutch retailer Twin Sport and Wiggle & Chain Reaction Cycles in the UK.
Despite a 20 per cent fall in pre-tax profit to £507 million in the 12 months to the end of April, Frasers remains optimistic about its future growth prospects. The company’s adjusted pre-tax profit, its preferred measure, rose to £544.8 million from £478 million in the previous year. The reported profits were impacted by the disposal of some properties and subsidiaries, as well as a £12.5 million loss related to the acquisition of Matchesfashion.
As Frasers Group continues to expand its global presence and enhance its portfolio of consumer brands, the strategic investment in Accent marks an exciting new chapter in the company’s growth story. With shares in Frasers Group having risen 7 per cent over the past year, investors will be keeping a close eye on the retailer’s future acquisitions and international expansion plans.
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