by Apparel Resources News-Desk
06-May-2019 | 2 mins read
Chinese sportswear company Xtep International Holdings Ltd., has announced that it will acquire the K-Swiss brand for around US $ 260 million after reaching an agreement with the brand’s parent company E-Land World Company Ltd. The Chinese firm will also buy E-Land’s lesser known Palladium and Supra brands, after acquiring all the company’s outstanding shares. The deal will be finalised by June of this year.
According to the market analysts, the acquisition is fitting with predictions that Chinese firms are showing keen interest in US footwear and apparel brands.
“We are extremely excited to announce the proposed acquisition with E-Land, a strategic move to complement our product portfolio and elevate us as one of the leading global multibrand sportswear companies. Not only will it strengthen Xtep’s foothold in the expanding Chinese sportswear market, but it will also provide us with growth opportunities in untapped overseas markets such as Southeast Asia.” – Ding Shui Po, Chairman and CEO, Xtep
The K-Swiss brand have experienced resurgence over recent years with year-on-year growth of 12 per cent in 2018 noting a revenue of US $ 109 million. Whereas the Palladium’s sales grew by 10 per cent in order to reach US $ 78 million.
Moreover, E-Land bought K-Swiss in 2013 for US $ 4.75 per share in a deal valued about US $ 170 million. The company makes a significant profit in this deal for the brands that have experienced fluctuating sales for the past six years.
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