Acquisition of a retail market leader in Austria

In 2012–2013, we conducted an analysis of the European market for SportsDirect.com in terms of potential acquisitions. As a result of our activities, which we conducted in cooperation with a partner in Austria, the acquisition of the Austrian market leader was completed.

The value of the acquisition was EUR 40.5 million.

SportsDirect.com is an international retailer of sports apparel and footwear, one of the largest players globally, and a market leader in the United Kingdom. SportsDirect.com is rapidly expanding its retail network in the UK, Ireland, Belgium, the Netherlands, France, Portugal, Slovenia, Cyprus, Hungary, the Czech Republic, Austria, and Poland. In addition to the world’s biggest sports brands, Sports Direct holds products from exclusive brands in the fashion and leisure categories for women and men. SportsDirect is part of Frasers Group plc, which has a diversified portfolio of branded sports, fitness, premium lifestyle, and luxury stores in more than twenty countries, and sells through the online channel. Sport Eybl & Sports Experts GmbH (SSG), based in Wels, is the largest sports goods retailer in Austria. At the time of the transaction, it had a total of 55 branches in Austria and Germany. With the acquisition, SportsDirect.com took a high 25% share of the Austrian market.

Deal timeline

June 2013: British group Sports Direct bought 51% of the shares in the Austrian company Sport Eybl & Sports Experts.
June 2013: according to press reports, the group paid EUR 10.5 million for the stake.
June 2013: the buyer also agreed to provide EUR 30 million of financing from its own funds.
June 2013: Sport Eybl said most of the proceeds from the share sale would go toward repaying bank debt.
July 2013: the Austrian Competition Authority approved the takeover of 51% of Sport Eybl by Sports Direct.

Service: M&A advisory on mergers and acquisitions

Client:

NV SPORTS DIRECT