Frasers Group announces long-term strategic partnership with Accent Group to expand Sports Direct brand in Australia and New Zealand
Why we think this is good
The RNS announcement outlines a significant long-term strategic partnership between Frasers Group and Accent Group to expand the Sports Direct brand in Australia and New Zealand. This represents a positive growth opportunity for Frasers Group, with plans to open up to 100 stores in the region over time. The partnership also includes Frasers increasing its shareholding in Accent Group, demonstrating confidence in the venture. While the news is positive, it does not meet the criteria for a 'very good' rating as it is not an explicit profit upgrade or transformational acquisition.
Key Points
- 25-year agreement with Accent Group to launch Sports Direct brand in Australia and New Zealand
- Plans to open 100 Sports Direct stores in the region
- Frasers increasing shareholding in Accent Group to 19.57%
- Accent Group to acquire Frasers' discount online fashion marketplace, MySale
Summary
Frasers Group has announced a 25-year strategic retail agreement with Accent Group to launch and operate the Sports Direct brand across Australia and New Zealand. Accent Group has a significant presence in Australasia, with over 900 stores and proven retail operations capability. Frasers will increase its shareholding in Accent Group to 19.57%, demonstrating confidence in the growth potential. The partnership will allow Accent Group to access Frasers' global brands and brand relationships, providing a material new growth opportunity.