Frasers Group has entered into an agreement with Signa Retail Department Store Holding GmbH to acquire SportScheck for an undisclosed fee.

The acquisition of the German sports retailer is designed to allow for UK-based Frasers, which is owned by Mike Ashley and is responsible for brands such as Sports Direct and House of Fraser, to grow its presence in Germany, one of the biggest sports markets in Europe.

SportScheck, which boasts revenue of approximately €350m (£304m), has over 75 years in the sports retail industry, with 34 stores based in cities across Germany, and 13 million customers visiting stores per year.

As part of Frasers, SportScheck will be able to benefit from the group’s elevation strategy, which has driven strong performance across the firm by investment in store concepts, digital capabilities and strengthened brand relationships.

Sports Direct is a strategic partner for global sports brands such as Nike and Adidas and therefore has the support to assist in its international expansion strategy.

Completion of the transaction will be subject to merger control clearance and Frasers expects the transaction to close in the first quarter of 2024.

Chief executive officer (CEO) at Frasers Group, Michael Murray, 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 - 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.”

CEO at Adidas AG, Bjørn Gulden, added: “Murray'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.”

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