New York-based Foot Locker has acquired Japan’s sneaker retailer Atmos for US$360 million as part of its expansion plan in Asia Pacific.
Expected to close late in the third quarter of this year, the transaction will be funded with cash. Under the deal, Atmos will maintain its name, but will operate as a new banner in Foot Locker’s portfolio.
According to Foot Locker, the acquisition will accelerate its global reach with a highly strategic foothold in Japan.
“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,” said Richard A. Johnson, chairman and chief executive officer of Foot Locker.
Founded in 2000 by Hidefumi Hommyo, Atmos sells premium sneakers and apparel, including its exclusive in-house label. The Japanese retailer generated approximately US$175 million of revenue in its fiscal year 2020, more than 60 per cent of which was generated through digital channels.
Atmos’s base of 49 stores globally, including 39 in Japan, operate under the Atmos Banner and its women’s brand Atmos Pink. Atmos has a presence in the US and Asia markets, including South Korea, Thailand, Malaysia and Indonesia.
Beside Atmos, Foot Locker has also acquired the US’s footwear chain WSS for US$750 million in cash.
“Both transactions reflect our commitment to our growth strategy and engaging with new and incremental consumers,” said Johnson.