Frasers Group buys DW Sports out of administration for £37m

Frasers buys Dave Whelan Sports out of administration for £37m
Frasers Group, formerly Sports Direct, has offered administrators more than £30 million for DW Sports
// Frasers Group has acquired rival DW Sports
// Mike Ashley’s retail empire paid £37m for the sports and gym business
// Frasers will spend up to £6.9m on stock from DW Sports gyms

Mike Ashley’s Frasers Group will spend £37 million acquiring competitor DW Sports from its administrators.

Earlier this month Frasers Group was reported to have offered a £30 million bid for the former Wigan Athletic owner Dave Whelan’s DW Sports, including its 73 gyms and 75 stores.

READ MORE: Frasers Group places £30m takeover bid on DW Sports

Whelan is said to be a long-term rival of Ashley’s, dating back to their days owning competing football teams.

Ashley’s company will now spend £37 million on DW Sports, despite the latter reporting a loss of £20 million in the year to March 2019.

Frasers Group will pay up to a further £6.9 million for stock from DW Sport’s gyms, although it is not buying the business name or brands.

Speaking in light of the deal, Frasers Group said it would strengthen its gym and fitness business Everlast with the deal.

DW Sports joins Jack Wills, Evans Cycles, and House of Fraser in Ashley’s recent spate of retail acquisitions.

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