Acquisition of Puma by the PPR Group

Résumé du document

The merger acquisition process will have very few impacts for PPR. We decided to explain it in this way. We will attempt to explain PPR's acquisition in the following sequences.

In the beginning, the company started a wood industry known as Gautier SA. Several years later in 1962, the company renamed itself as Pinault SA.

The newly named company decided to develop itself further in the distribution field. It acquired various companies in this field, such as CFAO in 1990, Conforama in 1991. The company also added and bought several other companies, such as Au Printemps SA and La Redoute.

In 1994, the company again decided to rename itself. It became Pinault-Printemps-Redoute or known as PPR today. The international expansion of the company was mainly developed by the acquisition of BRYLANE of the Redcats, a company, which sells furniture in the United States. Mr. Pinault had ambitions to further develop his company in various fast growing commercial areas.

Extraits

[...] This decrease can be explained by the economic crisis affecting many companies worldwide. In conclusion, the acquistition of PUMA by the PPR group has been positive. We base this conclusion by studying various aspects: Marketing (with synergies), Financial (good results), Human Resources (no problems with staff) and Commercial (increase in the turnover). 08 Automne A picture taken 12 April 2007 shows French luxury goods PPR chief executive Francois-Henri Pinault during a press conference PPR announced 17 July 2007 it had acquired a stake of 62.1 percent German sportswear maker Puma. [...]

[...] PUMA is fast growing and profitable. This is one reason why PPR and PUMA would be a perfect merger, both companies working together. For PUMA, PPR represents expertise in the marketing world. First, PUMA hopes to improve its distributions operations to reduce its costs, and to develop its new store openings. PUMA wants to strengthen its image, and increase its position in both the fashion and luxury merchandise world. PPR has an excellent reputation in the design sector. PUMA could widen its product base with sportings brand designs by Alexander McQueen and Stella McCartney. [...]

[...] This acquisition cost PPR 5,4 billion Euros. PPR financed this operation entirely by debts of 100%. PPR was already in debt by 3.5 billion Euros at the end of 2006. PPR borrowed all this money from various banks and by other means of credit. Due to these debts, PPR had a debt ratio of 60%. This meant that PPR was primarily financed by the various banks. This is a dangerous position for a large company to be in, it is risky financing. [...]

[...] Acquisition of Puma by the PPR Group Acquisition of Puma by the PPR Group The merger acquisition process will have very few impacts for PPR. We decided to explain it in this way. We will attempt to explain PPR's acquisition in the following sequences. Presentation of the PPR Group In the begining the company started a wood industry known as Gautier SA. Several years later in 1962, the company renamed itself as Pinault SA. The name change was the name of the CEO of that period of time. [...]

[...] Luxury, which represents of PPR's turnover. Both of these sectors are developing quickly and are stable. Presentation of Puma PUMA is a German company, created by Rudolf Dassler, whose goal was to produce and sell sport shoes. Its international development has been very quick to gain recognition with their sponsorships of famous sport personalities, such as Pele, and Maradonna. Nowadays PUMA is a multinational firm that is well known in more than eighty countries. It is the most lucrative company in the sports sector of merchanding sales with an operation margin of nearly 15%. [...]