Anta Sports Offers Billions for Puma Stake from Pinault Family
Overview
Chinese sportswear giant Anta Sports Products has reportedly made an offer to acquire the Pinault family's 29% stake in struggling German firm Puma. While financing is reportedly secured, talks have stalled, with the Pinault family seeking over 40 euros per share. Puma shares surged on the news as investors weigh potential new ownership amid the brand's turnaround efforts.
Anta Sports Eyes Puma Acquisition
Chinese sportswear manufacturer Anta Sports Products has put forward an offer to purchase the Pinault family's 29% stake in German rival Puma. Sources familiar with the negotiations revealed that the bid was made several weeks ago, with Anta reportedly securing the necessary financing for the potential acquisition.
Deal Faces Roadblocks
Despite the offer and secured financing, the situation has reportedly stalled. The Pinault family, through their entity Artemis, is understood to be holding out for a valuation exceeding 40 euros per share for their Puma holding. This comes as Puma faces significant market challenges, with its shares trading around 24.6 euros after a recent 9% surge, and its market capitalization standing at €3.3 billion, down roughly 50% year-on-year.
Puma's Turnaround Strategy
Puma's new Chief Executive Officer, Arthur Hoeld, initiated a turnaround strategy in October. The brand has struggled to recapture consumer interest, with recent sneaker releases like the Speedcat failing to meet expectations and sales declining as shoppers turn to competitors such as Adidas, On, and Hoka.
Anta's M&A Track Record
Hong Kong-listed Anta, known for its success in acquiring and revitalizing Western sports and lifestyle brands, has previously explored acquiring Puma. In 2019, Anta led a consortium that acquired Amer Sports, the owner of brands like Wilson and Salomon. Analysts at RBC noted that a disposal of the Artemis stake could be positive for Puma, potentially bringing in new perspectives and support for the brand's early-stage turnaround.
The Pinault family, which also controls luxury conglomerate Kering, has faced investor scrutiny regarding debt accumulation as they sought diversification amid a downturn in luxury sales. While previously indicating a reluctance to sell at current valuations, the stake was acknowledged as "non-strategic."
