Frasers Buys Sportscheck
Frasers Group plc ("Frasers" or the "Group") announces that it has entered into a binding agreement with Signa Retail Department Store Holding GmbH to acquire SportScheck, one of the leading sports retailers in Germany. It has agreed to buy SportScheck, which trades from 34 stores in prime city locations and has annual revenue of about 350 million euros ($369 million).
The acquisition will enable Frasers to grow its presence in Germany, one of the biggest sports markets in Europe and a key focus area for the Sports segment. SportScheck has over 75 years of expertise in sports retail, with 34 stores in prime city locations across Germany, revenue of approximately €350m, and a loyal customer base of over 13 million visitors per year. As part of Frasers, SportScheck will benefit from the Group's Elevation Strategy which has driven strong performance across the business by investing in store concepts, digital capabilities and strengthened brand relationships. Sports Direct is a strategic partner for the global Sports brands such as Nike and Adidas (as referenced in previous announcements), therefore has the support to assist in its international expansion strategy.
In 1946, Otto Scheck made his first collection of winter clothing in Munich from old military supplies , thereby laying the foundation for the SportScheck company. In 1958, Scheck's son Klaus Scheck (1940–2016) joined the business and took over management in 1965. This was taken over proportionately by the Otto Group in 1988 and completely in 1991.
In the 1970s, one of the first indoor climbing walls, probably the first ever, was built in the stairwell next to the elevator in the Munich headquarters on Sendlinger Strasse . It was made of natural stone (Wettersteinkalk) and planned by Reinhold Messner . When they moved to Neuhauser Straße in 2016 , the main building and the wall were abandoned.
In the 21st century, Sportscheck was in financial deficit with falling sales. At the end of 2019, the Otto Group sold 100% of Sportscheck to Signa Retail , which is controlled by the Austrian investor René Benko and which, among other things, is also the parent company of Galeria Karstadt Kaufhof . This sale was initially subject to examination by the Federal Cartel Office . On February 10, 2020, it was announced that the project was harmless from a competitive perspective.
Michael Murray, CEO of Frasers Group, commented: "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."
Bjørn Gulden, CEO of Adidas AG: "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."
Completion of the transaction will be subject to Merger Control Clearance. They expect the transaction to close in the first quarter of 2024 and will update the market in due course.
