Foot Locker Inc. completed the acquisition of Atmos, a digitally-led retailer headquartered in Japan, for $360 million, subject to certain customary adjustments.
Richard Johnson, chairman and CEO, 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. We deeply value Atmos’s unique brand, innovative, experiential stores, premium offerings, collaborations, and understanding of sneakerhead culture. 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. We are excited about the many opportunities we will collectively be able to capture as a result of this partnership as we continue creating significant long-term value for our shareholders, consumers, vendor partners, and employees.”
Hidefumi, CEO, chief creative officer, Atmos, said, “Today Atmos enters a new era, well-positioned to bring our dynamic and exciting sneakers to more people around the world. Atmos was founded with a love of sneakers and a passion for innovation, and with Foot Locker as our partner, we have the opportunity to drive global growth while maintaining what makes us unique. We have worked with Foot Locker for years on product collaborations and partnerships, and we are excited about what is ahead as we pursue our shared passion for sneaker culture, streetwear, creativity and self-expression.”
Atmos will maintain its brand name, identity, ethos, and value proposition as part of the Foot Locker family of brands. Foot Locker said it is committed to “building on Atmos’s strong foundation to propel the brand into its next phase of growth.”
As previously announced, Foot Locker expects Atmos to generate low double-digit sales growth annually and low double-digit to mid-teens EBITDA margins over the next five years and be accretive to EPS in fiscal year 2021. As previously reported on August 20, 2021, the company anticipates that the acquisitions of WSS and Atmos combined will be accretive to EPS in the range of $0.44 to $0.48 per share in 2022.
Evercore served as financial advisor to Foot Locker, and DLA Piper LLP served as its legal advisor.
Foot Locker’s banners include Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Atmos, WSS, Footaction, and Sidestep.
Photo courtesy Reuters
