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China’s Anta Sports Products has offered to buy 29 percent of struggling German sportswear firm Puma from France’s Pinault family, three people with knowledge of the talks said.
Anta made the offer a few weeks ago and has secured financing for the acquisition should a deal go ahead, said two of the sources. However, the situation had stalled, one added.
Artemis had been expecting any offer for its Puma stake to exceed €40 ($47) a share, a fourth person with knowledge of the matter told Reuters. All four sources spoke on condition of anonymity because the matter is private.
Artemis is run by Francois-Henri Pinault, chairman of Kering, which includes fashion house Gucci among its brands. The Pinault family acquired its Puma stake from Kering when it transformed the conglomerate into a pure luxury player in 2018.
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Artemis and Puma declined to comment. Anta did not immediately reply to a request for comment.
Puma’s market capitalisation was €3.3 billion at Wednesday’s close, down around 50 percent from the same date last year as the brand faced a steep decline in sales.
Puma’s new CEO Arthur Hoeld set out his turnaround strategy in October after sneaker releases like the Speedcat failed to generate the hype executives hoped for, while sales have fallen as shoppers opted for rivals such as Adidas, On and Hoka.
Hong Kong-listed Anta, which has a track record of acquiring and revamping Western sports and lifestyle brands, had been exploring a bid for Puma, a source close to the matter said in November. In 2019, it led a consortium to buy Amer Sports, owner of racquet maker Wilson and mountain sports specialist Salomon.
A senior source close to Artemis said in September the Pinault family would not sell their Puma stake at the then current market valuation but conceded the stake was “non-strategic.” Puma shares have since risen by 15 percent.
Artemis, which controls Kering as well as auction house Christie’s and Hollywood talent agency CAA, has been under investor scrutiny due to the debt it built up as Pinault sought to diversify away from Gucci during a slide in luxury sales.
By Kane Wu and Amy-Jo Crowley; Editors: Lisa Jucca, Anousha Sakoui and Alexander Smith
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Opinion: Puma’s Trailing the Pack — Deal or No Deal
The key to transforming the German sportswear brand is turbocharging sales growth, and that will be a struggle, writes Andrea Felsted.
Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.
