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.
[...] With the acquisition of PUMA, PPR will be able to hit the fashion sportware market to appeal to new female customers of the fashion world. This is a great opportunity for PPR to broaden its marketing bases by combining sports and fashion. In order to acquire PUMA, PPR bought shares of PUMA for 330 Euros per share. By the end of the acquisition merger process, PPR was in possession of of PUMA's capital. This acquisition cost PPR 5,4 billion Euros. PPR financed this operation entirely by debts of 100%. [...]
[...] PPR has an excellent reputation in the design sector. PUMA could widen its product base with sporting brand designs by Alexander McQueen and Stella McCartney. Both of these well-liked designers work with PPR. They have designed collections for PUMA and ADIDAS. PUMA could expand their sports lines to include other sports, such as swimming or motorcycling. Moreover, the money invested by PPR would allow PUMA to increase their marking and communication budgets. This is a very important factor to maintain the development of the PUMA brand. [...]
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