Frasers Group, led by Mike Ashley, has invested in Accent Group, acquiring a 14.65% stake in the Australian and New Zealand-based retail and distribution business.

The FTSE 100 company described this move as a “strategic investment” aimed at enhancing its footprint in Australia and New Zealand, which are crucial markets in Frasers’ strategy to become a prominent global sports retailer.

As part of the deal, Frasers is entitled to nominate a director to join the Accent board, facilitating greater collaboration.

Recently, Accent reported £861 million in sales through nearly 900 stores and online channels, and it oversees the distribution of several sports and lifestyle brands, including Hoka, Vans, and Dr Martens.

Michael Murray, CEO of Frasers Group, commented on the investment, stating, “This investment is an exciting step in the expansion of our international footprint, which is a key growth driver for the group.” He praised Accent for building an impressive ecosystem of sports and lifestyle brands in the region.

The 14.65% stake, valued at approximately A$165 million (£85 million), was sold by businessman Brett Blundy.

Accent revealed that they had been in discussions with Frasers for an extended period regarding a strategic partnership and potential collaborative opportunities.

Daniel Agostinelli, CEO of Accent Group, expressed enthusiasm about the partnership, noting, “We see the potential for significant mutual opportunity with Frasers Group, and are excited by the beginning of this new relationship between the organisations.”

Founded in 1988 in New Zealand, Accent Group started as a wholesale distributor and has since expanded into Australia through a series of acquisitions, including brands like Hype and Glue Store. The company now has its headquarters in Melbourne and employs around 7,500 people.

Brett Blundy’s private investment firm, BB Retail Capital, previously acquired a A$100 million stake in Accent in 2017, and Blundy is set to relinquish his position on Accent’s board “in due course.”

This isn’t Frasers’ first entry into the Australian market; in November 2022, they completed the acquisition of Mysale, a flash sales platform, boosting their regional presence.

Ashley’s retail journey began with a £10,000 family loan for his first shop in Maidenhead in 1982. Since then, his company has grown to encompass over 40 consumer brands, establishing itself as a leading retail group in the UK.

This year, Frasers has completed several acquisitions to strengthen its global reach, including the purchase of Dutch retailer Twin Sport in April and the acquisition of Wiggle & Chain Reaction Cycles earlier in February.

Frasers has also focused on expanding within the UK, acquiring independent fashion retailer Thackerays in July.

In December 2023, the company took over Matchesfashion, a London-based designer platform, for £52 million from Apax Partners, although soon after, the retailer faced administration.

In its latest annual results, Frasers reported a 20% decline in pre-tax profits to £507 million for the 12 months ending April, compared to £638 million previously. However, their adjusted pre-tax profit increased to £544.8 million from £478 million the prior year.

The decrease in reported profits was attributed to the sale of properties and subsidiaries, alongside a £12.5 million loss related to the acquisition of Matchesfashion.

Despite this, shares in Frasers Group have climbed 7% over the past year but saw a slight dip of 2½p, or 0.3%, to 855p during trading on Wednesday morning.