Foot Locker completes Atmos acquisition
Foot Locker on Tuesday announced the completion of its acquisition of Atmos, a digitally led, premium, global retailer headquartered in Japan, for $360 million.
The New York-based specialty athletic retailer first announced plans to acquire Atmos in early August, adding that it aims to help propel Atmos into its next phase of growth, while equally enhancing its own global footprint in the Asia-Pacific market.
Foot Locker said it expects Atmos to generate low double-digit sales growth annually and low double-digits to mid-teens EBITDA margins over the next five years.
"We deeply value Atmos's unique brand, innovative, experiential stores, premium offerings, collaborations and understanding of sneakerhead culture,” said Richard Johnson, chairman and chief executive officer of Foot Locker.
“Atmos expands our global reach in the rapidly growing Asia-Pacific market, establishes a critical entry point in Japan and allows us to benefit from immediate scale. We are excited about the many opportunities we will collectively be able to capture as a result of this partnership as we continue creating significant long-term value for our shareholders, consumers, vendor partners, and employees."
As part of the Foot Locker family of brand, Atmos will maintain its brand name, and preserve its identity, brand ethos, and unique value proposition.
"Today Atmos enters a new era, well-positioned to bring our dynamic and exciting sneakers to more people around the world. Atmos was founded with a love of sneakers and a passion for innovation, and with Foot Locker as our partner, we have the opportunity to drive global growth while maintaining what makes us unique,” said Hidefumi, CEO, chief creative officer for Atmos.
“We have worked with Foot Locker for years on product collaborations and partnerships, and we are excited about what is ahead as we pursue our shared passion for sneaker culture, streetwear, creativity and self-expression."
Most recently, Foot locker also entered into an agreement to acquire Eurostar, Inc. (WSS) for $750 million. The deal closed in September. The company anticipates that the acquisitions of WSS and Atmos combined will be accretive to EPS in the range of $0.44 to $0.48 per share in 2022.
Foot Locker’s banners now include Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Atmos, WSS, Footaction, and Sidestep. It currently operates approximately 3,000 retail stores in 28 countries across North America, Europe, Asia, Australia, and New Zealand as well as its websites and mobile apps.
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