Luxury group PPR announces skateboard ride
French luxury products group PPR ventured into the world of skateboarding on Monday with an announcement it was paying $516.1 million (349.6 million euros) in a friendly takeover of US firm Volcom.
Volcom makes clothing and accessories for skateboarders, surfers and for sunboarders, and PPR described the acquisition as an "important" step in the creation of its division for sport and lifestyle.
PPR said it was offering 24.5 dollars per share, representing a premium of 37.0 percent on the average price of Volcom shares in the last three months.
PPR wants to build a sport and lifestyle portfolio around its sportswear group Puma in the same way as it has grouped its chic clothing brands around Gucci.
The company said it aims to roughly double its sports and lifestyle sales within four years.
"I could say that in 2015 our sports and lifestyle group will be above 5 billion (euros) in sales," chief financial officer Jean-Francois Palus said in a conference call.
Puma rang up 2.7 billion euros in sales last year, while Volcom, which is active in 40 countries, earned $323 million in sales in 2010.
When asked if PPR plans to hit the five billion euro target with just Puma and Volcom, Palus replied: "And maybe some others."
© 2011 AFP