Foot Locker acquires Japanese footwear retailer Atmos
Foot Locker has completed the acquisition of Japanese digitally-led retailer Atmos in a $360m deal as it continues expand its portfolio this year.
The deal, which is subject to certain customary adjustments, will see Atmos maintain its brand name while operating as part of the Foot Locker brand portfolio.
Atmos currently operates a network of 49 stores worldwide, with 39 in Japan.
Foot Locker said in a statement that it is committed to building on Atmos's strong foundation to propel the brand into its next phase of growth.
Richard Johnson, Chairman and Chief Executive Officer of Foot Locker, said: "We are delighted to officially welcome atmos's iconic founder, Hidefumi Hommyo, and the entire atmos team to the Foot Locker family.
"Atmos expands our global reach in the rapidly growing Asia-Pacific market, establishes a critical entry point in Japan and allows us to benefit from immediate scale."
The US-based speciality athletic retailer expects Atmos to generate low double-digit sales growth annually and low double-digits to mid-teens earnings before interest, taxes, depreciation and amoritization (EBITDA) margins over the next five years and be accretive to earnings per share in fiscal year 2021.
Footlocker also acquired athletic footwear and apparel retailer Eurostar (WSS) for $750m in August and while it revived its private apparel label since exiting the category three years ago.
The company anticipates that its recent acquisitions of WSS and Atmos will be accretive to EPS in the range of $0.44 to $0.48 per share in 2022.