Puma SE (PUM) has explored a sale of the German sportswear maker as efforts to revive the brand drag into a fifth year, according to people familiar with the matter.
Kering SA (KER), which also owns Gucci, contacted potential
buyers earlier this year to gauge interest, said the people, who
asked not to be identified because talks are private. Sovereign-wealth funds from the Middle East such as Qatar as well as Asian
investors were approached, they said.
The discussions have yet to lead to any sort of takeover
proposal and it remains unclear whether the company will still
pursue a sale of the brand, the people said. Representatives for
Kering, Puma and Qatar declined to comment.
Kering owns about 86 percent of Puma, having acquired
control of the sporting-goods maker in 2007. Puma, which has a
market valuation of about 2.5 billion euros ($3.1 billion) based
on the remaining traded shares, is revamping athletic shoes and
stepping up marketing as it seeks to reorient the company’s
positioning around performance gear.
Kering is also making changes at Gucci, where the top two
executives are stepping down amid faltering growth.
In April, Kering Chairman Francois-Henri Pinault said he
was convinced the company should have a sports and lifestyle
division that wouldn’t be expanded until he’d revived Puma.
Mario Ortelli, an analyst at Sanford C. Bernstein, is
skeptical about .... Continue reading on Bloomberg....