U.S. footwear retailer Foot Locker announced plans to acquire Japan’s Atmos, as the American company accelerates its expansion across the Asia-Pacific region.
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New York-based Foot Locker said it has entered into a definitive agreement to acquire Text Trading Company, which owns and licenses the Atmos brand, for US$360 million. The transaction will be funded by Foot Locker’s available cash, according to a press release.
A digitally led retailer headquartered in Japan, Atmos retails sneakers and apparel, an exclusive in-house label and collaborative relationships with leading vendors in the sneaker industry, as well as experiential stores, and an omni-channel platform.
The retailer boasts 49 stores globally, including 39 in Japan, operating under the Atmos banner and Atmos Pink, its women’s brand. Atmos will maintain its banner name with the new acquisition.
In fiscal 2020, Atmos reported revenues of US$175 million during the 12-month period, more than 60 percent of which was generated through digital channels. Foot Locker said that the acquisition of Atmos will accelerate the specialty retailer’s global reach with a strategic foothold in Japan, the third largest economy globally, while extending the company’s premium and top-tier offering.
“Atmos is uniquely positioned through its innovative retail stores, high digital penetration, and distinctive products that have made it a key influencer of youth and sneaker culture,” said Richard Johnson, Chairman and Chief Executive Officer of Foot Locker.
“With Atmos, we are executing against our expansion initiative in the rapidly growing Asia-Pacific market, establishing a critical entry point in Japan and benefitting from immediate scale,” continued Johnson.
The acquisition will see Atmos founder, Hidefumi Hommyo, absorbed into the Foot Locker company, along with the rest of the Atmos team.
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The transaction is expected to close late in the third quarter of 2021, subject to the satisfaction of customary closing conditions.