Anta Sports Products, a leading sports company based in China, announced on Tuesday that it plans to acquire a 29.06 percent share in Puma from the Pinault family. The deal, worth 1.5 billion euros (approximately US$1.8 billion), will make Anta the largest shareholder in the German sports apparel manufacturer.
In the agreement, which was outlined in a stock exchange filing, Anta will pay 35 euros per share in cash for 43 million Puma shares. This represents a considerable 62 percent premium on Puma’s closing share price of 21.63 euros on Monday. Following this announcement, Anta’s shares saw an early trading increase of 3.4 percent on Tuesday.
This strategic move comes at a time when Puma is striving to regain its market position after losing ground to rivals Nike and Adidas. The brand is also currently dealing with increasing competition from rapidly expanding brands such as New Balance and Hoka.
Anta expressed its confidence in Puma’s potential to enhance its global competitiveness and brand awareness with Anta as its primary investor. It was also stated that, upon finalizing the deal, Anta would pursue seats on Puma’s board.
“Puma’s global business footprint and focused positioning in sports categories are highly complementary to our existing multi-brand and specialized business,” Anta expressed in a public statement.
The acquisition is likely to boost Puma’s sales in the highly profitable mainland Chinese market, while also promoting Anta’s multi-brand strategy. Anta has a successful history of acquiring and revitalizing Western sports and lifestyle brands. In 2019, for instance, Anta led a consortium to purchase Amer Sports, a company that owns brands such as racquet manufacturer Wilson and mountain sports specialist Salomon.
The transaction follows a challenging period for Puma, as the company strives to boost sales and investor confidence under new CEO, Arthur Hoeld. In an effort to ignite a company turnaround, Puma announced in October that it would increase discounts, enhance marketing, and reduce its product range. This strategic shift also includes the reduction of 900 jobs.
Previously, Artemis, headed by Francois-Henri Pinault, the chairman of luxury group Kering, characterized its Puma stake as non-strategic. The Pinault family received the holding from Kering in 2018 when the group refocused its operations exclusively on luxury goods.
Puma has been grappling with weakened demand and lackluster sneaker launches, such as the Speedcat. Hoeld, who took the helm last year, has proposed a turnaround strategy focused on “brand heat,” performance products, and cost discipline.
The deal is still conditional on antitrust clearances, shareholder approval at Anta, and regulatory approvals in China and other jurisdictions. Anta plans to organize an extraordinary general meeting, with the deal’s closure expected following the fulfillment of these conditions.
What percentage share in Puma does Anta Sports Products plan to acquire?
Anta Sports Products is planning to acquire a 29.06 percent share in Puma.
How does Anta Sports Products plan to pay for the Puma shares?
Anta will pay 35 euros per share in cash for 43 million Puma shares.
What is the expected impact of this acquisition on Puma’s sales?
The acquisition is expected to increase Puma’s sales in the profitable mainland Chinese market.
