K-Swiss to Be Bought out in $170 Million Deal — City Index Asia
SINGAPORE–(Marketwire / Asianet-Pakistan – January 28, 2013) – City Index Asia — South Korean conglomerate E. Land World has announced it will buy the stock of sneaker company K-Swiss for $4.75 a share, a total equity value of around $170 million.
E. Land operates 10,000 stores, and 200 brands around the world, including Italian firms Mandarina Duck and Coccinelle.
Last year, E. Land even joined a consortium that launched a failed bid for the Major League Baseball side the LA Dodgers.
In 2011 their sales reached $7.1 billion, and analysts believe this latest deal could see the enterprise value of K-Swiss reach around $135 million.
That will come as a relief for K-Swiss, which has suffered a dramatic decline in recent sales due to the waning popularity of its iconic white tennis shoe.
Sales have been down by 50 per cent since 2005, resulting in shares plummeting by 91 per cent.
But this latest deal has given the company a boost, with shares rocketing to $4.71, an increase of 47.65 per cent; the highest rise for the company in 52 weeks.
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