XTEP Speeds Up Its International Layout To Buy US Brand K-Swiss At 300 Billion Won.

According to Korean media reports, XTEP, a domestic sports and sporting goods company, will reach an agreement with E-Land World, a Korean apparel retailer, to acquire the K-Swiss of its US tennis shoes brand.

It is reported that the scale of the paction is about 300 billion won, about 270 million US dollars and 1 billion 770 million yuan, which is expected to reach a preliminary agreement in April.

Founded in 1966, K-Swiss is headquartered in Van Nuys, California, and is well known to consumers as it has made the world's first pair of all leather tennis shoes.

In 2013, K-Swiss, which had lost money due to over expansion, was bought by the Korean clothes and love group at a price of 170 million US dollars.

According to the relevant data, K-Swiss's net profit in 2018 was as high as 110 million US dollars.

After more than a month's hand in hand with the two brands of Wolverine World Wide group, Merrell and Saucony, XTEP has another layout in the international sporting goods market to enhance its competitiveness in the overseas market, which means that XTEP, like Anta, Lining and other competitors, is expanding from single brand to multi brand group.

In April 11th, XTEP announced that the board would continue to explore and assess a number of potential M & A opportunities.

In addition, XTEP issued 247 million new shares in early April, HK $5.56 per share, net income of HK $1 billion 355 million, although XTEP did not disclose the use of funds, which is widely believed to be used for this potential acquisition.

In fact, as early as a month ago, Ding Shuibo, chairman of XTEP's board of directors, had said that the company aimed at potential targets in outdoor sports, water sports and ice sports, and had the opportunity to negotiate with potential targets for better prices.

Some experts said that at present, the market competition is intense. M & A is an effective way to enhance the market competitiveness of domestic brands.

But mergers and acquisitions also have risks, and the effect after M & a still needs to be tested by the market.

At present, XTEP has not announced and commented on the takeover news.

It is worth mentioning that, as of the end of December 2018, XTEP revenue rose 24.8% to 6 billion 383 million yuan, of which income growth in the second half of 30.4%, compared with the last half of the year 18.1% growth accelerated significantly, net profit rose 60.9% to 656 million yuan compared with the same period.

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