Frasers Group snaps up German retail chain SportScheck

Frasers Group has agreed a deal to buy German sports retailer SportScheck.

Mike Ashley’s retail vehicle, which owns Sports Direct and House of Fraser, told shareholders on Tuesday it has entered a “binding agreement” to buy the business from Signa Retail Department Store Holding.

Frasers did not disclose the value of the deal.

The UK retail firm said the move will allow it to grow its presence in Germany and saw key supplier partner Adidas praise the deal.

SportScheck runs 34 stores in cities across Germany and has annual revenues of around 350 million euro (£303 million).

It is the latest deal in Frasers’ acquisition strategy, which has also seen it build up a stake in German luxury brand Hugo Boss.

On Monday, Frasers also increased its stake in online fashion retailer Boohoo.

Michael Murray, chief executive officer of Frasers, said: “Acquiring the leading sporting goods retailer in Germany is a big step in our journey to becoming the number one sports retailer in EMEA (Europe, Middle East and Africa) – 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.”

Bjorn Gulden, chief executive officer of Adidas, 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.”