In a move to expand its reach into LatinX communities, Foot Locker has agreed to acquire Eurostar, a U.S.-based athletic footwear and apparel retailer that owns 93 off-mall stores on the West Coast, for $750 million.
“WSS has built a successful, high-growth business by pioneering the neighborhood-based store model, built on community engagement and a full-family offering. This acquisition enhances our product mix and provides access to a customer base and store footprint that are both differentiated from and complementary to our current portfolio,” said Richard A. Johnson, chairman and CEO of Foot Locker. “We are thrilled to welcome WSS’s customers into the Foot Locker family, as well as join forces with their talented team. Looking ahead, we see significant opportunities to expand this business, including by accelerating WSS’s store growth into new geographies in North America.”
WSS will maintain its name, operating as a new banner in Foot Locker’s portfolio. The transaction is expected to close late in the third quarter of this year. In a separate transaction, Foot Locker agreed to acquire Text Trading Company, K.K., which owns and licenses the atmos brand, a digitally-led, premium global retailer headquartered in Japan, for US$360 million, with additional purchase price consideration based on performance targets. The agreement was executed on July 31, and the closing is anticipated within 60-90 days.
The acquisition of atmos, a brand featuring premium sneakers and apparel, an exclusive in-house label, collaborative relationships with leading vendors in the sneaker ecosystem, experiential stores and a robust omni-channel platform, is expected to accelerate Foot Locker’s global reach with a highly strategic foothold in Japan.
