Mike Ashley's Frasers Group PLC (LSE:FRAS) has formed a partnership with Aussie-listed Accent Group (ASX:AX1) to launch its Sports Direct retail chain Down Under.
A 25-year agreement includes a commitment from the FTSE 250-listed group to increase its shareholding in Accent Group by 5% to 19.57%, with the ASX-listed company acquiring Frasers' MySale discount online fashion marketplace.
Accent, which sells 'premium lifestyle and sports footwear' goods from over 900 stores under 12 brands, has agreed to help Frasers open 100 stores in the region, with an initial rollout planned of at least 50 Sports Direct stores targeted over the first six years.
In return, Accent Group will be offered access to many "global brands" owned by Frasers, including Everlast, Slazenger, Karrimor and USA Pro, as well as leveraging Frasers' brand relationships with larger brands like Nike, adidas, Under Armour and New Balance.
The shareholding in Accent will be enlarged with Frasers subscribing for £29 million (AU$60.4 million), with the Australian company plannnig to use to fund the initial roll-out of the Sports Direct business in Australia and New Zealand.
Frasers CEO Michael Murray said: "Since acquiring a strategic shareholding in Accent, we have developed a robust partnership between Frasers and Accent."
He said the new agreement, "reaffirms our commitment to drive growth of the Sports Direct brand internationally and marks a significant step forward in our ambition to becoming the leading global sporting goods retailer".
Frasers shares climbed 2% to 627.5p on Tuesday morning.