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Kering kicks off plans to spin off Puma
Posted on Friday, 12 January 2018 09:24
Luxury brand retailer Kering will distribute about 70.0 per cent of its stake in Puma to its investors in a deal estimated to be worth EUR 3.72 billion.
The French vendor will retain a 16.0 per cent share of the German sports shoes manufacturer, which will see its free float rise to around 55.0 per cent.
Following the deal, Kering’s controlling shareholder, Artémis, which is the holding company of the Pinault family, will own a 29.0 per cent stake in Puma.
The price is not yet finalised and the transaction will be subject to shareholder approval.
Established in 1948, Puma now has 11,128 employees and, as of 10th January 2018, a market capitalisation of EUR 5.31 billion.
For the quarter ending 30th September 2017, it reported net earnings of EUR 62.10 million, up 57.2 per cent from the EUR 39.50 million posted for the same period in 2016.
Revenue also grew in the timeframe; sales rose to EUR 1.12 billion in Q3? 2017, a 13.1 per cent increase from the EUR 990.20 million recorded for Q3 2016.
This improved performance is partly down to the sportswear company’s collaborations with celebrities; megastar Rihanna’s third release of Fenty x Puma creeper trainers in May 2017 sold out in just 35 minutes.
Other famous representatives for the brand include Olympic champion Usain Bolt, UK grime rappers Krept and Konan and US reality star Kylie Jenner.
Kering is a fashion powerhouse, owning several of the top international luxury brands, including Gucci, Alexander McQueen, Stella McCartney and Balenciaga, and distributing them to over 120 countries.
As of 10th January 2018, it had a market capitalisation of EUR 51.96 billion.
Chief executive François-Henri Pinault said that the disposal will allow the firm, which invested in Puma back in 2007, to focus on developing its luxury couture, leather goods, and jewellery and watches brands.
© Zephus Ltd