Foot Locker Acquires Retailers Atmos, Eurostar For Aggregate $1.1B

Specialty athletic retailer Foot Locker Inc FL has acquired Text Trading Company K.K. (atmos), a retailer headquartered in Japan, for $360 million, and Eurostar Inc (WSS), a U.S.-based athletic footwear and apparel retailer, for $750 million.
WSS and atmos will continue to operate under their names.
atmos have a base of 49 stores globally, including 39 in Japan. It generated about $175 million in revenue in FY20, more than 60% generated through digital channels.
WSS is focused on the Hispanic consumer demographic, operating a fleet of 93 off-mall stores in markets across California, Texas, Arizona, and Nevada. It raked in about $425 million in revenue in FY20.
Foot Locker expects to close both the deals late in the third quarter of FY21 and to be accretive to earnings per share in FY21.
The company plans to fund the transactions with available cash. It held $1.96 billion in cash and equivalents as of May 1, 2021.
Price action: FL shares are trading lower by 1.58% at $56.16 on the last check Monday.

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