South Korea’s E.Land is talking with Groupe Lafuma about a possible acquisition of the French company, which owns the Oxbow action sports, Millet and Lafuma outdoor and La Chameau equestrian lifestyle brands.
Groupe Lafuma confirmed the talks in a notice to investors last week after its stock price soared from €17 to €25 per share on the NYSE Euronext. The share price jumped after a French magazine reported the previous week that E.Land had offered €35 per share to buy Groupe Lafuma. The company’s shares closed €26.50 Friday, just shy of their 52-week high.
“Lafuma, which continually monitors its development strategy and its share capital, confirms that E.Land has shown interest in the company and discussions are at a very early stage, with no guarantee at this stage regarding the outcome,” reads a statement released by Lafuma Sept. 17. The company said it would issue a press release if and when appropriate.
Based in Seoul, E.Land is one of the largest retailers in South Korea and has significant presence in fashion retailing in mainland China. According to some South Korean media reports, E.Land was among the companies working on bids this spring for Collective Brands, which was ultimately acquired by a consortium that included Wolverine World Wide Inc. and two investment firms.
France-based Groupe Lafuma returned to profitability in the fiscal year ended Sept. 30, 2011 thanks in part to growing sales to Asia. The company reported net income of €3.88 million on a 1.6 percent increase in revenues, which reached €249.4 million. South Korea is widely considered as Asia’s biggest and most mature market for outdoor products after Japan.
