Foot Locker completes $750m acquisition of shoe retailer WSS

September 21, 2021 (Last Updated November 11th, 2021 12:05)

Foot Locker also announced agreement to purchase Japanese retailer atmos.

Foot Locker completes $750m acquisition of shoe retailer WSS
Foot Locker completes acquisition of WSS for $750m. Credit: Open Grid Scheduler / Flickr.

US-based speciality athletic retailer Foot Locker has closed its acquisition of athletic footwear and apparel retailer Eurostar (WSS).

The $750m cash deal is subject to customary adjustments.

Following the deal, WSS will become part of Foot Locker’s portfolio and operate as a new brand while keeping its name.

Foot Locker said it is committed to developing the WSS team to drive the company’s growth.

In line with the acquisition, Foot Locker has appointed its former North America customer experience vice-president Anthony Aversa as the chief operating officer of WSS.

Aversa will oversee the brand’s market planning, real estate and customer experience functions, reporting directly to WSS senior vice-president and general manager Rick Mina.

Foot Locker chairman and CEO Richard Johnson said: “WSS is a highly complementary addition to our portfolio, and we are excited to officially welcome its team to the Foot Locker family.

“WSS brings an expanded and differentiated customer base rooted in the rapidly growing Hispanic community, diversifies and enhances our product mix, and strengthens our footprint with a 100% off-mall store fleet located in key markets.

“We look forward to building on WSS’ deep community connections as we accelerate its growth and drive significant additional long-term value for our shareholders.”

Foot Locker expects annual sales growth in the low double-digits from WSS.

The company expects these acquisitions to be accretive to earnings in the range of $0.44 to $0.48 for each share over the next fiscal year.

Foot Locker’s brand portfolio includes Foot Locker, Kids Foot Locker, Champs Sports, Eastbay and Sidestep among others.

Last month, the company announced agreement to buy Japanese premium sneaker and apparel retailer atmos for $360m.

atmos runs a network of 49 stores worldwide, including 39 in Japan, under the atmos and atmos pink brands. The retailer generated around $175m in revenue last year.