Chinese sports brand Xtep to buy owner of U.S.' K-Swiss for $260 mln

Xtep International Holdings

02/05/2019 11:20

HONG KONG, May 2 (Reuters) - Chinese homegrown sports brand
Xtep International Holdings Ltd  1368.HK  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.
    The Fujian-based sportwear 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  .HSI .
     

 (Reporting by Donny Kwok; Editing by Rashmi Aich)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))