Anta Sports acquires 29% of Puma for $1.8B
On Tuesday, China’s Anta Sports Products announced its intention to acquire a 29.06 percent stake in Puma from the Pinault family for 1.5 billion euros ($1.8 billion), positioning itself as the largest shareholder in the German sportswear company. Anta announced in a stock exchange filing that the Hong Kong-listed company will acquire 43 million Puma shares at a price of 35 euros per share in cash. The price represents a 62 per cent premium over Puma’s closing share price of 21.63 euros on Monday, which saw an increase of nearly 17 per cent during the session. Anta shares experienced a 3.4 per cent increase in early trading on Tuesday. The stake sale occurs as the German firm aims to restore its standing after losing ground to Nike and Adidas. It also encounters competition from rapidly expanding brands such as New Balance and Hoka.
Earlier this month, the deal was first reported. Anta expressed confidence that Puma could enhance its international competitiveness and strengthen its brand recognition with the Chinese company as its largest investor. It was stated that Anta would pursue board seats at Puma once the deal was finalized. “Its global business footprint and focused positioning in sports categories are highly complementary to the group’s existing multi-brand and specialised business,” Anta said in a statement. The agreement is anticipated to assist Puma in boosting its sales within the profitable mainland Chinese market as Anta broadens its multi-brand approach.
Anta has a history of acquiring and revitalizing Western sports and lifestyle brands. In 2019, it spearheaded a consortium to purchase Amer Sports, which owns the racquet manufacturer Wilson and the mountain sports expert Salomon. In early January, it is reported that Anta had proposed to acquire approximately 29 percent of Puma from the Pinault family and had obtained financing for the purchase, although discussions had reportedly stalled at that time due to valuation issues. The transaction occurs as the German sportswear group faces challenges in revitalizing sales and restoring investor confidence under the leadership of its new CEO, Arthur Hoeld. In October, Puma announced plans to offer increased discounts, enhance marketing efforts, and reduce its product range, alongside the decision to cut 900 jobs as part of a turnaround strategy.
Artemis, under the leadership of Francois-Henri Pinault, chairman of luxury group Kering, had previously characterized its stake in Puma as non-strategic. The Pinault family acquired the holding from Kering in 2018, as the group redefined its focus as a dedicated luxury entity. Puma faces challenges as demand has softened, and recent sneaker releases, such as the Speedcat, did not create the anticipated momentum among executives. Hoeld has articulated a turnaround strategy centered on brand heat, performance products, and cost discipline. The agreement is contingent upon antitrust clearances, shareholder approval from Anta, and regulatory approvals in China and other jurisdictions. Anta stated it anticipates convening an extraordinary general meeting, with the closing aimed for after the conditions are fulfilled.
