Accent Group to launch Sports Direct in ANZ in 25-year Frasers deal
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The news: Footwear retailer Accent Group has agreed a "long-term relationship" with London-listed retail chain Frasers that will see it launch and operate sporting goods retailer Sports Direct in Australia and New Zealand.
The numbers: Accent will be granted the right to launch and operate the Sports Direct business, including online, in Australia and New Zealand for an initial 25-year term.
Accent has planned an initial roll-out of at least 50 Sports Direct stores over the next six years, and ultimately sees an opportunity for over 100 Sports Direct stores.
As part of the agreement, Frasers will increase its shareholding in Accent from 14.57% to 19.57% at a price of $1.718 per share, representing a 3.5% discount to its last closing share price of $1.815
The subscription proceeds of around $60.4 million will be used to fund the initial roll-out of the Sports Direct business.
The context: Accent, which owns the Hype DC and Platypus shoe stores, said the opportunity to bring Sports Direct to the Australia and New Zealand market builds on the company's growth plan and expands its existing presence in the sports and athletic market.
The agreement will also provide Accent with access to Frasers' owned brand portfolio to sell both within Sports Direct and other Accent stores. These brands include Everlast, Lonsdale, Slazenger, Karrimor, USA Pro and Hot Tuna.
Accent also announced that its chief executive Daniel Agostinelli has committed to remain in the role for at least another three years.
What they said: "The long-term relationship with Frasers represents a strategically important alliance with a large global retailer and the material new growth opportunity for Accent that we have been looking for," said Accent chairman David Gordon.
The source: ASX
