Foot Locker Completes Acquisition of Japanese Retailer

Foot Locker has completed its previously announced acquisition of atmos, a global retailer headquartered in Japan.
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Foot Locker acquired the company for $360 million and completed the deal through certain subsidiaries. Under terms of the deal, atmos will keep its brand name and identity. Atmos has 49 stores, including 39 in Japan, and carries a range of popular footwear brands, in addition to apparel and accessories. 

At the time the deal was announced in August, Foot Locker was also acquiring U.S.-based athletic footwear and apparel retailer Eurostar for $750 million. The two acquisitions enable Foot Locker to push its portfolio further into Asia.

“We deeply value atmos's unique brand, innovative, experiential stores, premium offerings, collaborations and understanding of sneakerhead culture. atmos expands our global reach in the rapidly growing Asia-Pacific market, establishes a critical entry point in Japan and allows us to benefit from immediate scale,” Richard Johnson, chairman and CEO of Foot Locker, said in a statement. “We are excited about the many opportunities we will collectively be able to capture as a result of this partnership as we continue creating significant long-term value for our shareholders, consumers, vendor partners, and employees."

Atmos reported $175 million in revenue in fiscal year 2020, with more than 60% of revenue coming from digital channels. Foot Locker expects atmos to generate low double-digit sales growth annually and low double-digits to mid-teens EBITDA margins over the next five years and be accretive to EPS in fiscal year 2021.