Frasers lifts stake in Accent, plans Sports Direct store rollout across Australia
UK-based Frasers Group is set to deepen its investment in Accent Group and launch a joint venture to bring its Sports Direct retail chain into the Australian market. The deal is expected to be confirmed this week.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Equity investment and joint venture
Investors: Frasers Group
Frasers will increase its shareholding in ASX-listed Accent Group from 14.65 per cent to 19.99 per cent. The additional 5.34 per cent equity is expected to be acquired via a placement, priced on a volume-weighted average basis. This investment adds to Frasers' existing stake, purchased from billionaire retailer Brett Blundy in August 2024.
As part of the agreement, Frasers and Accent will form a joint venture to launch physical Sports Direct stores across Australia. The brand is currently only available online in the local market. Accent will lead the local operations, using its strong retail infrastructure and brand partnerships, which include Skechers, Hoka and UGG.
Accent chief executive Daniel Agostinelli will oversee the expansion, leveraging the group’s established retail network and distribution capabilities.
Frasers’ move comes amid a broader push to grow Sports Direct internationally. Earlier this month, the company expanded its joint venture with MAP Active to enter five new South-East Asian markets, with long-term plans to open 350 stores across the region.
For Accent, the deal provides access to deeper capital support, as the company looks to refocus its operations. Over the past year, Accent closed 17 Glue stores, sold off children’s brand The Trybe, and ended a distribution deal with Caterpillar-branded products.
Accent also owns fashion brands Nude Lucy and Stylerunner, and runs The Athlete’s Foot chain. It has a market capitalisation of around $1 billion. Frasers is valued at £2.89 billion ($6 billion).
Analysts at Citi said the partnership was becoming increasingly likely and would likely be viewed positively by the market. They noted it could support valuation upside if it unlocks new growth avenues for Accent.
It remains unclear if Frasers intends to go beyond a 19.99 per cent stake. Any move above that threshold would trigger takeover regulations under Australian law.
