Frasers, the British sportswear and apparel retailer under the ownership of Mike Ashley, has expanded its footprint in the luxury market with the acquisition of the struggling online platform MATCHES from Apax Partners. The transaction amounted to approximately 52 million pounds ($66 million).
MATCHES provides products from over 450 designers and primarily generates its revenue from international sources. The company serves customers in 150 countries beyond the borders of the UK.
On Wednesday, Frasers announced that the agreement will advance its “elevation strategy,” aimed at moving the business into a more upscale market segment.
The strategy entails making investments in flagship stores and online operations, as well as fortifying partnerships with renowned brands like Nike, Adidas, The North Face, and On Running.
Earlier this month, Frasers reported a 12.6% rise in first-half profit, though it did caution that the global luxury market had softened.
Frasers’ shares saw a 0.5% increase in late morning trading, extending the gains for 2023 to 31.5%. Mike Ashley holds a 73% stake in the equity.