Puma Becomes Luxury Brand

French luxury goods group PPR, owner of Gucci and Yves Saint Laurent, has agreed to buy a 27.1-percent stake in German sportswear manufacturer Puma and launch a full takeover offer for the group, the two companies said on Tuesday.

A takeover by PPR would complete the transformation of the former family-run German company, which has become one of the world’s leading sports brands and principal rival to fellow German group Adidas and US-based Nike.

Puma has often been the subject of bid speculation, especially in the wake of rival Adidas’s $3.8 billion acquisition of Reebok last year.

The bid from PPR values the German company at about €5.7 billion ($7.6 billion).

PPR, controlled by French tycoon Francois-Henri Pinault, said the planned acquisition was justified by Puma’s “attractive growth potential,” adding that the German group could become an “iconic brand.”

In its own statement, Puma welcomed the offer, which it said gave it the support of “a financially strong and leading international company”.

Puma said it would also “benefit from PPR’s global positioning, strong portfolio of premium brands and expertise in the retail business.”

The Puma management board “is convinced that PPR, as one of the world’s top fashion and retail companies, will be the perfect partner for us,” it said.

Leave a Reply

Your email address will not be published.