Clothing and footwear company Accent Group (ASX: AX1) has partnered with UK-based global retailer Frasers Group to bring sporting goods brand Sports Direct to Australian and New Zealand consumers.
Under the terms of the agreement, Accent will launch and operate Sports Direct retail and online stores in the region for an initial 25-year term.
Leveraging Sports Direct’s proven operating model in the UK, Europe and south-east Asia, Accent has planned an initial roll-out of at least 50 stores over the next six years and is targeting more than 100 stores by 2050.
Accent currently has distribution agreements with brands including Skechers, Hoka, Saucony, Merrell, Vans, Timberland and Lacoste.
The new partnership will also give it access via factory-direct sourcing to Frasers’ brand portfolio that features Everlast, Lonsdale, Slazenger, Karrimor, USA Pro and Hot Tuna.
Accent will acquire Frasers’ discount online fashion marketplace MySale to consolidate the Australian operations and extend its online presence.
Accent chief executive officer Daniel Agostinelli said launching Sports Direct across Australia and New Zealand would provide a material new growth opportunity for Accent and an enhanced product portfolio for consumers.
“Sports Direct is one of the leading sporting goods retailing businesses globally and we see a significant opportunity to bring a new and exciting business to these markets,” he said.
“The roll-out will have key brand support and will leverage a proven operating model, combined capability and global brand relationships enabled by the Frasers and Accent alliance.”
To support the Sports Direct deal, Mr Agostinelli has committed to remaining as chief executive officer of Accent for another three-year term.
Frasers has agreed to subscribe for 35.1 million additional Accent shares priced at $1.718 each for a further 5% shareholding in the company, boosting its total equity to 19.57%.
The subscription proceeds of approximately $60.4 million will provide Accent with initial funding to establish the Sports Direct presence.
Frasers’ increased equity is a clear indication of its confidence in Accent’s management strength and new business development capability.
A standstill arrangement is in place that prevents Frasers exceeding a 26% holding in Accent for three years following completion of the new share issue.
Frasers is one of the world’s largest owners and retailers of sports, premium and luxury brands, with more than 1,500 stores in over 30 countries.
The group reported revenue of approximately $11.44 billion in 2024.
$6.03b of this came from its UK Sports segment across more than 800 stores.
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