Mike Ashley’s Frasers Group takes stake in Accent

Mike Ashley’s Frasers Group has taken a 14.65 per cent stake in Accent, a retail and distribution business based in Australia and New Zealand.

The FTSE 100 retail group said it was a “strategic investment” that would allow Frasers to expand its presence in Australia and New Zealand, which is “a key market in the group’s ambition to become a leading global sports retailer”.

Frasers, which is majority owned by Ashley, will be able to propose a director to join Accent’s board under the partnership.

In the most recent financial year Accent reported £861 million in sales from almost 900 stores and online platforms. The group is responsible for the distribution of 34 sports and lifestyle brands, including Hoka, Vans and Dr Martens.

Michael Murray, chief executive of Frasers Group, said: “This investment is an exciting step in the expansion of our international footprint, which is a key growth driver for the group.”

He added that Accent had created “an incredible ecosystem of sports and lifestyle brands in Australia and New Zealand”.

The 14.65 per cent stake in Accent, worth around A$165 million (£85 million) based on the company’s market value, was cashed in by the businessman Brett Blundy.

Accent said it had been negotiating with Frasers “for some time in relation to a strategic relationship and other opportunities”.

Daniel Agostinelli, the chief executive officer of Accent Group, said: “We see the potential for significant mutual opportunity with Frasers Group, and are excited by the beginning of this new relationship between the organisations.”

Founded in New Zealand in 1988, Accent Group began life as a wholesale distributor. The company expanded into Australia and has grown through several acquisitions, including clothing brands Hype and Glue Store. The group is headquartered in Melbourne, Australia and employs around 7,500 staff.

Blundy’s private investment group, known as BB Retail Capital, first acquired a A$100 million stake in Accent in 2017. The Australian billionaire is due to vacate his seat on Accent’s board “in due course”.

It’s not the first time the Sports Direct owner has expanded into the Australian market. In November 2022, Frasers completed the acquisition of Mysale, a flash sales site, as it sought to use the online retailer to expand its presence in the region.

Ashley opened his first shop in Maidenhead in 1982 with a £10,000 family loan. His company has since grown to become one of the UK’s leading retail groups, with more than 40 consumer brands

Frasers has announced the completion of several acquisitions this year, as it continues to enhance its global presence. In April the group acquired Twin Sport, the Dutch retailer, and bought Wiggle & Chain Reaction Cycles out of administration in February.

The retailer has also continued to takeover UK-based businesses as it expands at home. In July, the group acquired independent fashion retailer Thackerays.

In December 2023, Frasers acquired Matchesfashion, a London-based designer brands platform, for £52 million from private equity group Apax Partners. However, just months after the acquisition was completed the retailer was placed into administration.

In its latest annual results Frasers reported a 20 per cent fall in pre-tax profit to £507 million in the 12 months to the end of April, down from £638 million. Adjusted pre-tax profit, the company’s preferred measure, rose to £544.8 million, an increase from £478 million in the previous year.

Frasers said its reported profits were lower because of the disposal of some properties and subsidiaries. The retailer also recorded a £12.5 million loss in respect of the acquisition of Matchesfashion.

Shares in Frasers Group, which have risen 7 per cent over the past year, fell by 7½p, or 0.9 per cent, to close at 850p.