China’s Anta Sports has made an offer to acquire the Pinault family’s 29 percent stake in Puma, according to Reuters, as the German sportswear brand works through a difficult reset.
The proposal was made several weeks ago, and Anta has secured financing should a deal move forward, sources told Reuters. Talks have since stalled, however, with Artémis, the Pinault family’s investment vehicle, said to be seeking a valuation above €40 per share.
Puma shares jumped up as much as 9 percent after the news broke, even though the company’s market value still sitting around €3.3 billion, roughly half of what it was a year ago. The decline is the result of a massive drop in sales and a loss of ground to competitors such as Adidas, On, and Hoka.
The brand is now in the early stages of a turnaround under new CEO Arthur Hoeld, who took over last year. In October, Hoeld acknowledged that Puma lacked “brand heat,” was carrying too much inventory, and had allowed its product range to become a bit too unfocused. Recent shoe launches like the Speedcat revival, kind of flopped as they failed to generate the momentum executives had hoped for.
Anta’s strategy seems to be to target underperforming Western brands that still have global reach. For example, in 2019, it led a consortium to acquire Amer Sports, owner of Salomon, Arc’teryx, and Wilson, a deal that has since been viewed as a success, particularly as Arc’teryx returned to growth.
For the Pinault family, Puma has been considered a non-core asset for a long time now. Artémis acquired the stake in 2018 when Kering spun off the sportswear brand to focus exclusively on luxury. François-Henri Pinault has previously said Puma was “non-strategic,” though the family was unwilling to sell at last year’s depressed valuations.
But things seem to be shifting now. Artémis has faced investor scrutiny over rising debt tied to its broader portfolio, and a sale of the Puma stake could give them more financial flexibility, provided the price is right, of course.
Whether a deal materialises is still something we’ll have to wait and see. Talks are reportedly stalled right now, and Artémis is under no obligation whatsoever to sell. Still, Anta’s approach highlights how exposed Puma has become, even as it attempts to rebuild under new leadership.
