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Signage at a pop-up store of ANTA Sports Goods Co., Ltd. in Beijing, China, on Saturday, August 24, 2024. Anta plans to release its financial report on August 27.
Over There | Bloomberg | Getty Images
shares cougar Shares surged 20% on Tuesday after China’s Anta Sports said it would acquire a 29% stake in the German sportswear company from the Pinault family.
Anta will pay 1.5 billion euros ($1.78 billion), or 35 euros per share, to acquire 29.06% of Puma’s shares and become the company’s largest shareholder.
The deal comes as Puma has struggled to revive sales and complete a revamp of its business following the arrival of former Adidas executive Arthur Hoeld last year.
Puma shares gave up gains slightly after the opening bell and ended trading up 16%.
Bernstein China consumer analyst Melinda Hu said the valuation of 1.5 billion euros seemed “reasonable” compared with the price-to-earnings ratios of peers in the sportswear industry, especially given Puma’s current “loss-making position.”
“Anta is essentially acquiring a brand with deep heritage and long-established products at a lower valuation,” Hu added.
The deal builds on Anta’s efforts to expand its market outside of China, where it faces increasing competition from companies including China. Nike and adidas.
By leveraging Puma’s heritage, Anta can diversify into new product categories and markets where it doesn’t yet have a strong foothold, Hu said.
Anta has a track record of expanding its global footprint by acquiring and revamping Western sports and lifestyle brands. In 2019, it led a consortium that acquired Amer Sports, with a portfolio that included Wilson, Arc’teryx, Salomon and Atomic.
“Puma fills a gap in mass-market sneakers and active lifestyle — a niche between Nike, Adidas and budget brands,” said Julia Zhu, partner and head of consumer retail at consultancy CIC.
Zhu added that Puma is strong in Europe and Latin America but weaker in China and North America, creating “minimum overlap and maximum synergy potential.”
Anta said in a statement on Tuesday that by acquiring Puma’s equity, “the group is expected to further enhance its influence and brand awareness in the global sorted goods market.”
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Puma’s shares came under intense pressure last year, falling nearly 50%, as U.S. President Donald Trump’s tariffs rattled investors and retailers worried the tariffs could hit consumer demand, according to data from the London Stock Exchange. It has fallen more than 3% so far this year.
The company said last year Plans to reduce product rangeIt will cut discounts, improve marketing and cut 900 corporate jobs as part of a wider cost-cutting plan.
“This is not an acquisition because Anta does not have full control and Puma remains an independent company with its own management,” Hu noted. Reuters reported on Tuesday that Anta’s management team said they would talk to their Puma counterparts “first thing this morning.”
Global M&A rebound
The Anta-Puma deal also comes at a time when global companies are increasingly reassessing their risks and rewards in the face of technological disruption, rising geopolitical uncertainty and industry consolidation.
“Companies will make bolder moves, doubling down on certain parts of their global footprint and minimizing exposure to unfavorable parts,” according to a survey released by Bain & Company on Tuesday. More than half of the companies surveyed are preparing to sell assets in the next few years, Bain said, citing a desire to sharpen business focus, free up cash and take advantage of higher valuations in today’s market.
Data from Bain & Company shows that global deal activity has revived since last year, with deal value soaring 40% to $4.9 trillion, the second-highest deal value on record.
The consultancy expects global deal momentum to be sustained in 2026 as capital pools expand further as geopolitical tensions ease and capital pools expand further as private equity and venture capital firms seek to exit their growing backlog of assets.
Meanwhile, Sussanne Kumar, executive vice president of global M&A and divestitures at Bain & Company, said companies “urgently need to reinvent themselves to stay ahead of the powerful forces of technological disruption, a post-globalized economy and changing profit pools”.
