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By
Reuters
Published
May 3, 2019
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Chinese sports brand Xtep to buy owner of U.S.' K-Swiss for $260 million

By
Reuters
Published
May 3, 2019

Chinese homegrown sports brand Xtep International Holdings Ltd said on Thursday it would buy K-Swiss owner E-Land Footwear USA Holdings Inc for $260 million in an all-cash deal, as it aims to grow into a multi-brand portfolio group.


K-Swiss


The Fujian-based sportswear maker has agreed to buy a 100 percent stake in E-Land Footwear from E-Land USA Holdings Inc. and E-Land World Ltd, Xtep said in a said in a filing to the Hong Kong bourse.

E-Land Footwear also owns brands such as Palladium, Supra, PLDM and KR3W.

“The board believes that the transaction is an attractive opportunity to invest in a portfolio of global renowned sportswear and lifestyle brands targeting the high-end market segment,” Xtep Chairman Ding Shui Po said in the statement.

The deal will be financed by internal resources and is expected to be completed by the end of July, it added.

Xtep shares ended 4.5 percent higher on Thursday prior to the announcement, outpacing a 0.8 percent rise in the benchmark Hang Seng Index.

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