Anta Sports Products, China’s largest sportswear retailer, is set to acquire a 29% stake in German sportswear brand Puma, becoming the company’s largest shareholder. The move comes as Puma’s shares have been trading near their lowest levels in a decade. Following reports of the deal, the company’s shares surged 9%.
The Chinese firm will purchase the stake from the Pinault family, one of France’s wealthiest families, who control luxury conglomerate Kering, owner of brands such as Gucci and Yves Saint Laurent. The Pinaults initially acquired a controlling stake in Puma in 2007 but have since reduced their holdings. Anta will pay €1.51 billion ($1.8 billion) in cash for 43.01 million shares at €35 each, a 62% premium over Puma’s closing share price on Monday.
Puma has faced increased competition from other sports brands, leading to a turnaround plan involving job cuts and reduced discounting. Anta plans to expand Puma’s presence in China, where the brand currently generates only 7% of its global revenue. “Puma has more potential in the Chinese market, and we have insight on how to make them more successful in China,” said Wei Lin, Anta’s global vice president for sustainability and investor relations.
The acquisition marks a significant step forward in Anta’s “single-focus, multi-brand, globalization” strategy, according to the company’s chairman, Ding Shizhong. Anta has previously acquired several Western brands, including Finland-based Amer Sports and German label Jack Wolfskin. The deal is expected to be finalized soon, with Anta securing board representation at Puma.
The move is seen as a strategic expansion for Anta, which aims to increase its global presence and diversify its brand portfolio. Puma, meanwhile, hopes to leverage Anta’s expertise in the Chinese market to boost its sales and revenue. The deal’s outcome is expected to have significant implications for the sportswear industry, as Anta and Puma look to strengthen their positions in the global market.
