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Foot Locker Acquires Retailers Atmos, Eurostar For Aggregate $1.1B

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Foot Locker Acquires Retailers Atmos, Eurostar For Aggregate $1.1B
  • Specialty athletic retailer Foot Locker Inc (NYSE: FLhas acquired Text Trading Company K.K. (atmos), a retailer headquartered in Japan, for $360 million, and Eurostar Inc (WSS), a U.S.-based athletic footwear and apparel retailer, for $750 million.
  • WSS and atmos will continue to operate under their names.
  • atmos have a base of 49 stores globally, including 39 in Japan. It generated about $175 million in revenue in FY20, more than 60% generated through digital channels.
  • WSS is focused on the Hispanic consumer demographic, operating a fleet of 93 off-mall stores in markets across California, Texas, Arizona, and Nevada. It raked in about $425 million in revenue in FY20.
  • Foot Locker expects to close both the deals late in the third quarter of FY21 and to be accretive to earnings per share in FY21.
  • The company plans to fund the transactions with available cash. It held $1.96 billion in cash and equivalents as of May 1, 2021.
  • Price action: FL shares are trading lower by 1.58% at $56.16 on the last check Monday.
 

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