Puma shares surge 20% after Anta Sports buys stake for $1.8 billion

Core Viewpoint - Anta Sports is acquiring a 29% stake in Puma for 1.5 billion euros ($1.78 billion), positioning itself as the largest shareholder in the German sportswear company, amidst Puma's struggles to revive sales and implement a business overhaul [1][2]. Group 1: Acquisition Details - Anta will pay 35 euros per share to acquire a 29.06% stake in Puma [1]. - The valuation of 1.5 billion euros is considered "reasonable" compared to peer multiples in the sportswear sector, especially given Puma's current loss-making status [2]. Group 2: Strategic Implications - The acquisition allows Anta to buy a brand with a strong heritage and historically successful products at a distressed valuation, enhancing its global footprint [3]. - By leveraging Puma's brand, Anta aims to diversify into new product categories and markets where it lacks a strong presence [3]. Group 3: Market Positioning - Anta has a history of expanding globally through acquisitions, such as the 2019 purchase of Amer Sports, which includes brands like Wilson and Arc'teryx [4]. - Puma's strengths in Europe and Latin America, combined with its weaknesses in China and North America, present minimal overlap and maximum synergy potential for Anta [5]. - The acquisition is expected to enhance Anta's presence and brand recognition in the global sporting goods market [5].