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.