Foot Locker is set to acquire Japanese street brand Atmos and U.S.-based athletic footwear and apparel retailer WSS in two separate deals worth approximately $1.1bn (£719m).
Atmos sells premium sneakers and apparel across 49 stores globally, including 39 in Japan. In 2020, Atmos generated approximately $175m (£126m) in revenue, more than 60% of which was generated through digital channels.
Footlocker said the acquisition of the brand, for $360m (£258m), will accelerate its “global reach” with a highly strategic foothold in Japan, the third largest economy globally.
Meanwhile, WSS is an athletic-inspired retailer focused on the “large and rapidly growing” Hispanic consumer demographic, operating a fleet of 93 off-mall stores in key markets across California, Texas, Arizona, and Nevada. In 2020, WSS generated approximately $425m (£305m) in revenue.
Foot Locker agreed to acquire the brand for £750m (£538m).
Richard A. Johnson, chairman and CEO of Foot Locker, Inc. said: “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.
“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. We are thrilled to bring atmos into our portfolio of brands and build on the strong foundation of this differentiated business.”
He added: “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.”