PPR SA (Paris), the French luxury goods group, has entered into an agreement to acquire 27.1 percent of Puma AG Rudolf Dassler Sport (Herzogenaurach, Germany) for about $1.87 billion in cash from the athletic brand’s largest individual shareholder.
Following the acquisition of the controlling stake, PPR said it intends to launch an agreed takeover offer in cash on the remaining outstanding Puma shares at the same price.
“I am delighted to have reached an agreement . . . supported by Puma which creates the basis for a combined future for our two groups,” said PPR chairman and ceo Francois-Henri Pinault. “This friendly transaction represents an exciting development for PPR and a milestone in our strategy of profitable growth. I am confident that PPR is the ideal partner to support Puma in its current development phase to become a global iconic sport lifestyle company.”
Said Jochen Zeitz, Puma chairman and ceo: “As we continue the execution of our Phase IV strategy, we are convinced that PPR's proposal is a unique opportunity to get additional long-term support to achieve our global targets and our mission to become the most desirable sport lifestyle company in the world. My colleagues and I have carefully considered this proposal by PPR and subject to review of the offer document we will recommend it to our shareholders. We strongly believe that this friendly transaction is in the best interests of the company and that the offer price is fair to all Puma shareholders.”
PPR has said its strategy is based on achieving superior growth through a focus on international expansion, global brands and retail operations. The ambition is to strengthen PPR's portfolio with higher growth and higher margin businesses and the Puma transaction is entirely consistent with these strategic priorities.
Puma is a leading company in the sport lifestyle market with a strong international presence and an attractive financial profile. PPR noted that the Puma brand is product-driven, consumer-focused with a high global recognition, and therefore fits perfectly within PPR's global brand portfolio.