Anta Group has officially completed its acquisition of a 29.06% stake in PUMA SE, the German sportswear brand, becoming its largest shareholder. The deal, which was first announced in January and finalized on October 7, required Anta to pay 1.5 billion euros (approximately 11.3 billion yuan) in cash to Artémis SAS, the investment vehicle of the Pinault family.

This long-anticipated transaction marks the culmination of a decade-long ambition for Ding Shizhong, Chairman of the Board of ANTA SPORTS (HK: 02020). In an interview, he noted that acquiring Puma had been discussed as early as ten years ago but was not feasible until the timing was right, emphasizing that selecting good brands is a dynamic process of long-term investment management and continuous correction.

Headquartered in Fujian's Jinjiang, known as China's "shoe capital," ANTA SPORTS (HK: 02020) has grown from a small workshop into a comprehensive multi-brand sportswear group listed on the Hong Kong Stock Exchange in 2007. Through a series of high-profile acquisitions, the group has added renowned brands such as FILA, Descente, Amer Sports, Jack Wolfskin, and now Puma to its portfolio.

Ding Shizhong views Anta as a multi-brand enabling enterprise, where the value of multiple brands is not merely about owning logos, but about activating and awakening these brands to fully unlock their potential through group synergies.

Anta's 1.5 Billion Euro Bet on Puma Amid Persistent Performance Pressure

Before Anta officially announced its acquisition intent, rumors had circulated multiple times about the company considering a bid for Puma. The speculation was confirmed on January 27 this year when Anta announced its plan to acquire a 29.06% stake in PUMA SE at 35 euros per share, totaling approximately 1.5 billion euros. However, Puma, once one of the "big three" sportswear giants alongside Adidas and Nike, has seen its market performance weaken in recent years.

In 2023, Puma's sales peaked at 8.602 billion euros, but adjusted figures show consecutive declines, with last year's sales at only 7.296 billion euros, down 13.1% year-on-year. The company reported a continuing operations loss of 644 million euros, swinging from profit to loss. In the first half of this year, Puma's revenue fell 7.9% year-on-year to 3.554 billion euros, or 5.2% at constant exchange rates, with a consolidated net loss narrowing by over 80% to 46.3 million euros, though it remains in the red.

Under pressure from persistently sluggish performance, Puma has initiated multiple rounds of layoffs. Following a plan announced in March last year to cut 500 jobs globally, just seven months later, the company unveiled a new plan to reduce approximately 900 more positions worldwide by the end of 2026, about 13% of its workforce. Puma explained that the expanded layoffs are a response to high operating costs amid declining sales. As performance waned, Puma also fell out of favor in the capital markets. As of the October 7 close, its stock price was 23 euros per share, significantly down from historical highs, while Anta's offer of 35 euros per share represents a premium of over 50%.

Earlier reports indicated that Artémis SAS, controlled by the Pinault family, had hoped for offers exceeding 40 euros per share, but Anta's final price was below that. In an April announcement, Anta observed that Puma's stock had experienced a sharp decline over the past three years, highlighting market dislocations and suggesting the current market value may be disproportionately affected by temporary operational setbacks and short-term headwinds. Anta also expressed confidence in Puma's management team and strategic initiatives, and stated it will explore deeper collaboration post-acquisition to unlock global growth potential, especially in China, while preserving the brand's image and heritage.

In determining the acquisition price, Anta used EV/EBITDA as the primary metric and EV/Sales as a secondary reference, with comparable companies including Adidas and Nike as the closest peers, supplemented by Lululemon, Amer Sports, On Holding, and Deckers, while also placing itself in the reference framework. After comprehensive consideration, Anta's board deemed the acquisition consideration fair and reasonable, aligning with the overall interests of the company and its shareholders. In an interview with Yicai, Ding Shizhong stressed that he is a long-termist, and the company engages in long-term investments. He views the opportunity to acquire suitable brands as rare and something to be cherished, emphasizing the need to manage these brands well through operations and live up to the destiny with them.

From 600 Pairs of Shoes to Beijing to Building a Multi-Brand Giant in Jinjiang

Tianyancha data shows that Anta Sports Products Ltd. (HK: 02020) listed on the Hong Kong Stock Exchange in 2007 and is a comprehensive multi-brand sportswear group specializing in the design, R&D, production, and sales of athletic footwear, apparel, accessories, and other sports equipment. The company's origins trace back to the early 1990s.

Public records reveal that Anta's founder, Ding Shizhong, was born in Jinjiang, Fujian, known as the "shoe capital." His father initially made a living by fishing and, in the 1980s, partnered to open a small shoe OEM workshop. Ding, who dropped out of school due to poor grades, helped at home. In 1987, at 17, he took 10,000 yuan and 600 carefully selected pairs of shoes to Beijing alone. After a month of effort, a mall manager was impressed by his persistence and offered him a counter to try; the 600 pairs sold out quickly. Over the next few years, Ding successfully opened Beijing sales channels using a consignment model—settling payment after sales and accepting returns for unsold items—and earned his first pot of gold.

In 1991, recognizing the power of branding, Ding returned to Jinjiang and co-founded Anta shoe factory with his father and brother, symbolizing "peaceful entrepreneurship and honest conduct." Later, dissatisfied with OEM work for foreign brands and domestic wholesale, he led Anta onto the brand path, actively expanding retail networks in China. By the end of 1998, Anta had nearly 2,000 exclusive stores nationwide, providing a sales channel foundation for rapidly establishing its brand image.

In 1999, Ding overcame opposition to hire table tennis world champion Kong Linghui as a spokesperson for 800,000 yuan and spent two-thirds of annual profits on CCTV advertising. When Kong won the men's singles title at the Sydney Olympics, Ding's bold gamble paid off quickly. That year, Anta's sales surpassed 300 million yuan, six times that of 1997. In subsequent years, Anta expanded its brand influence through sponsorships of the CBA league and signings of NBA stars, listing on the Hong Kong Stock Exchange main board in 2007, and maintaining the top revenue position in the Chinese market for years.

After building brand awareness and capturing the market with cost-effective products, Ding shifted focus to the mid-to-high-end market, initiating Anta's over-a-decade-long "acquisition spree." From acquiring FILA's China business for hundreds of millions in 2009, to partnering with a consortium to buy Amer Sports for about 4.6 billion euros in 2019 (owning brands like Arc'teryx and Salomon), to taking over German outdoor brand Jack Wolfskin in 2025, and now becoming Puma's largest shareholder, Anta's multi-brand portfolio has continued to expand.

Anta's large-scale acquisitions are not mere capital maneuvers; Ding credits empowerment as the key to success. Regarding the core logic of operating a multi-brand matrix, he describes Anta Sports Products Ltd. (HK: 02020) as a multi-brand enabling manager. If a brand performs well, there is minimal intervention; only when issues arise does the group step in. Many acquired brands possess advanced sports technology, but Anta encourages them to focus on iterating these professional technologies. For example, after acquiring FILA China, Anta helped the brand quickly turn profitable. In 2025, FILA's revenue reached 28.47 billion yuan, up 6.9% year-on-year. Amer Sports, post-acquisition, not only successfully listed in 2024 but also returned to profitability.

Multi-Brand Synergies Drive Steady Growth in Anta's Performance

Under the continuous advancement of its "single focus, multi-brand, globalization" strategy, Anta Sports Products Ltd. (HK: 02020) has achieved steady performance growth. According to the group's financial report, in the first half of this year, revenue rose 12.9% year-on-year to 43.51 billion yuan; overall gross margin increased by 0.5 percentage points to 63.9%; operating efficiency continued to improve, with overall operating profit margin up 0.7 percentage points to 27%; and profit attributable to shareholders increased 12.9% year-on-year to 7.94 billion yuan.

By brand, in the reporting period, Anta brand revenue grew 4.8% year-on-year to 17.77 billion yuan, with operating profit margin down 0.8 percentage points to 22.5%; FILA brand revenue increased 6.1% year-on-year to 15.05 billion yuan, with operating profit margin up 1 percentage point to 28.7%. Notably, thanks to the continued release of multi-brand matrix synergies, all other brands collectively saw revenue surge 44.2% to 10.69 billion yuan, with operating profit margin at 33.1%, basically flat year-on-year. Anta also revealed that combined with Amer Sports, total revenue for the first half was approximately 67.98 billion yuan.

The acquisition of Puma shares is built on Anta's solid financial foundation. The company previously disclosed that the acquisition consideration would be funded from internal resources, including working capital. The financial report shows that in the first half of this year, free cash flow surged 54.2% to 11.63 billion yuan; net cash held by the group remained robust at approximately 39.11 billion yuan. As of the end of the first half, cash and cash equivalents on the books were 16.99 billion yuan, up 76% year-on-year; the debt-to-asset ratio decreased from 41.7% at the end of last year to 38.4%.

Regarding external doubts about Anta expanding through mergers and acquisitions, Ding responded that it is normal for outsiders to have different views, and he understands criticism from various angles. But he stressed the need to stay firm on strategy and do what is right. Ding emphasized that M&A is not a capital game; the purpose of capital operations is brand buying and selling, but they are passionate about these brands and dedicated to long-term management. He confidently stated that every brand improves after joining Anta Group, proving the group's strategic positioning as a multi-brand enabler, and only with healthy growth of each brand can the group achieve long-term, high-quality, and sustainable development.