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PPR to acquire U.S. sports clothing brand Volcom
13 May 2011: PPR, French retailer and luxury goods giant, is to buy surfing-inspired clothing firm Volcom for $607.5 million (approx Rs 2,703.37 crore), making good on its promise to recentre its operations on sports and lifestyle brands.
PPR, which already controls the German sports brand Puma, will make a tender offer to acquire all outstanding Volcom shares for $24.50 a share, a 37 percent premium over their three-month average trading price. The deal marks the latest step in Chief Executive Francois-Henri Pinault's strategy of spending some of the 2.4 billion euros raised from selling African distribution business CFAO and French furniture retailer Conforama.
The group is still looking for buyers for its catalog business Redcats and books and electronics retailer FNAC whose first-quarter sales disappointed investors.
PPR also owns fashion houses Gucci, Balenciaga and Alexander McQueen, whose creative director Sarah Burton designed the Duchess of Cambridge, Catherine Middleton's, wedding dress.
Source: Reuters