DLA Piper advises Foot Locker in US$360 million acquisition of atmos

Rhea-AI Summary

Foot Locker has announced its agreement to acquire Text Trading Company, K.K., which owns the atmos brand, for US$360 million, with additional performance-based purchase considerations. The deal was signed on July 31 and is expected to close within 60-90 days. This acquisition aims to enhance Foot Locker's global footprint, particularly in the Japan market, by leveraging atmos' culturally significant brand known for premium sneakers and apparel. The acquisition aligns with Foot Locker's growth strategy in the Asia-Pacific market.

Positive

• Acquisition of atmos brand strengthens Foot Locker's presence in the Asia-Pacific market.
• Purchase price of US$360 million aligns with Foot Locker's growth strategy.
• Potential for enhanced global reach through premium brand offerings.

Negative

• None.

NEW YORK, Aug. 4, 2021 /PRNewswire/ -- DLA Piper represented Foot Locker, Inc. (NYSE: FL) in its recent agreement 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 culturally connected 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, will accelerate Foot Locker's global reach with a highly strategic foothold in Japan.

"We were pleased to advise Foot Locker on this transaction, bringing together a strong cross-border team with extensive M&A and retail sector experience to ensure a successful result. This acquisition will support our client's robust growth strategy in the growing Asia-Pacific market and expand on its impressive brand portfolio, and we look forward to Foot Locker's continued success," said Erik Wulff, the DLA Piper partner who led the firm's deal team.

"The DLA Piper team demonstrated a high level of dedication, professionalism and transactional knowledge at every step of this acquisition, and their support was essential to navigating the many complexities of a large cross-border deal," said Randolph Brodwin, VP - Associate General Counsel at Foot Locker. "We are grateful for their efforts and look forward to continuing to work together."

In addition to Wulff (Washington, DC/Dallas), the DLA Piper team advising Foot Locker included partner Jay Finkelstein (Washington, DC), associate Kristin Bandura (Washington, DC) and partner David Kramer (Washington, DC) in the US; partners Lance Miller and Lawrence Carter and associates Tomoko Muneyuki, Edward Mears and Morita Takanobu in Tokyo; partner Anderson Lam in Hong Kong; partner Samata Masagee in Bangkok; and senior associate Wincen Santoso in Singapore.   

With more than 1,000 corporate lawyers globally, DLA Piper helps clients execute complex transactions seamlessly while supporting clients across all stages of development. The firm has been rated number one in global M&A volume for 11 consecutive years, according to Mergermarket.

The firm's Retail sector consists of nearly 200 lawyers in North America with experience in diverse, highly relevant areas of practice who provide creative solutions and strategic advice to clients in the retail industry. DLA Piper's extensive industry experience, sharp understanding of developing trends and global market presence ensures its ability to provide high-quality, seamless service while addressing retail clients' legal and business needs.

About DLA Piper
DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning us to help clients with their legal needs around the world. In certain jurisdictions, this information may be considered attorney advertising. dlapiper.com

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SOURCE DLA Piper

FAQ

What is the purpose of Foot Locker's acquisition of atmos?

Foot Locker aims to strengthen its global presence, particularly in the Asia-Pacific market, by acquiring the atmos brand.

How much did Foot Locker pay for the atmos acquisition?

Foot Locker agreed to acquire atmos for US$360 million, with additional performance-based considerations.

When was the acquisition agreement for atmos signed?

The acquisition agreement was signed on July 31, 2021.

What are the expected benefits of the atmos acquisition for Foot Locker?

The acquisition is expected to enhance Foot Locker's global reach and expand its brand portfolio.

When is Foot Locker expected to close the atmos acquisition?

The acquisition is anticipated to close within 60-90 days from the agreement date.