U.K.-based Frasers Group PLC has a plan to kick up its global expansion.
Frasers has acquired a non-controlling stake in Hudson Malta, a fashion retailer with operations in Europe and Africa.
Hudson Malta is a subsidiary of Hudson Holdings Ltd. Frasers and Hudson Holdings (HHL) inked a nonbinding letter of intent (LOI) a year ago on Oct. 10, 2023, for a partnership that would see Frasers making a “significant investment” and Hudson Malta obtaining the rights to operate some of Frasers’ brands locally. The LOI at the time also envisioned Frasers and HHL entering a retail and franchise agreement to expand Sports Direct and other Frasers Group brands across the Hudson markets.
Hudson Malta said on Monday that Frasers and HHL had finalized a “Master Framework and Shareholders’ Agreement (MSA) that includes the non-controlling stake. The MSA also includes the option of “further staggered acquisitions by Frasers Group at future dates resulting in Frasers Group taking on a controlling interest” in Hudson Holdings.
Frasers has become an active player in the investment and acquisitions front. Last year, it began acquiring stakes in British e-tailers Asos and Boohoo. Frasers eventually became Boohoo’s biggest shareholder. It also acquired luxury retailer Matches from private equity firm Apax Partners. But it placed the site into administration two months later, although Frasers did manage to repurchase the intellectual property assets of Matches.
Earlier this month, Frasers launched a takeover bid for accessories brand Mulberry, only to be told by Mulberry owner Challice Ltd. that it wasn’t interested. Challice, which holds a 56.4 percent majority interest in Mulberry, dueled with Frasers four years ago when the Mike Ashley-controlled company first made a run at the accessories brand.
