American sportswear and footwear retailer Foot Locker has, reportedly, acquired two athletic retailers for US $ 1.1 billion.
The acquisitions are being seen as a part of Foot Locker’s efforts to expand in the US as well as other parts of the globe.
While the US retailer has announced the acquisition of Eurostar (parent company of WSS) for US $ 750 million in cash, it will also be acquiring Japan’s Text Trading Company (parent company of Atmos) for US $ 360 million in cash.
Notably, Atmos is known for selling clothes and sneakers and generated US $ 175 million in 2020.
Acquisition of WSS is expected to help Foot Locker expand to US states like California and Texas, where the latter still doesn’t have good hold, whereas Atmos will go a long way to enable the retailer get a highly strategic foothold in Japan and the Asia-Pacific region.
An elated Dick Johnson, CEO, Foot Locker, said “With our ongoing investments in the business, we are confident in our ability to continue creating value for our shareholders, consumers, vendor partners and other stakeholders.”
It is also expected to widen Foot Locker’s product mix. While WSS will help Foot Locker fill a position as a ‘classics driven assortment for [the] full family’, Atmos will enable Foot Locker grow into the premium boutique streetwear market.
Both the deals are expected to close in Q3.
Foot Locker, which operates in 28 countries, generated US $ 8 billion in 2020. Today, it has several mall-based stores in the US, Canada, Europe and Asia.