Frasers Group PLC (LON:FRS) has hoovered up another high profile retail name with the acquisition of rival sportswear and gym group Dave Whelan Sports (DW) from administrators.
Frasers, formerly called Sports Direct, is paying £37mln plus up to a further £6.9mln for stock from DW’s gyms, though it is not buying the business name or brands.
Mike Ashley-run Frasers said it wants to strengthen its gym and fitness business Everlast and the DW transaction would complement its operation.
DW made a loss of £20mln in the year to end March 2019.
The business was set up by Dave Whelan, one of Mike Ashley’s keenest rivals, in 2009 and when it went into administration operated 73 gyms and 75 retail stores in the UK. Sister company Fitness First is a separate entity.
Jack Wills, Evans Cycles and House of Fraser have all recently been acquired by Frasers.