K-Swiss Snapped Up by Chinese Sportswear Giant Xtep International
Along with Supra and Palladium.
As Footwear News reports, major Chinese sportswear imprint Xtep International Holdings Limited has purchased all outstanding shares E-Land Footwear USA Holdings Inc., the parent company of K-Swiss, Palladium and Supra. The $260 million USD acquisition is expected to be completed by July 2019.
Xtep International is an immense sportswear company in its native China; the brand recorded a record 25% revenue boost in 2018, yielding an approximately ¥6.383 billion RMB (approximately $947 million USD). “Following the success of our three year strategic transformation, we stepped into a new era of business,” Xtep Chairman and Chief Executive Officer Ding Shui Po said in a statement. “Not only will [this acquisition] strengthen Xtep’s foothold in the expanding Chinese sportswear market, but will also provide us with growth opportunities in untapped overseas markets such as Southeast Asia.”
K-Swiss as a brand has enjoyed a mild resurgence in the past 48 months. The heritage label divulged 12% growth, earning revenues of $109 million USD in 2018. E-Land first acquired K-Swiss in 2013 in a deal valued at about $170 million USD. Meanwhile, sister label Palladium enjoyed similar gains, boosting revenue 10% in 2018 to $78 million USD.
Elsewhere in China, Amazon recently announced that it would shutter its Chinese e-commerce business this summer.
