Benzinga | Aug 2, 2021 09:32AM EDT

Foot Locker Acquires Retailers Atmos, Eurostar For Aggregate $1.1B

* Specialty athletic retailer Foot Locker Inc (NYSE:FL) has acquired Text Trading Company K.K. (atmos), a retailer headquartered in Japan, for $360 million, and Eurostar Inc (WSS), a U.S.-based athletic footwear and apparel retailer, for $750 million.

* WSS and atmos will continue to operate under their names.

* atmos have a base of 49 stores globally, including 39 in Japan. It generated about $175 million in revenue in FY20, more than 60% generated through digital channels.

* WSS is focused on the Hispanic consumer demographic, operating a fleet of 93 off-mall stores in markets across California, Texas, Arizona, and Nevada. It raked in about $425 million in revenue in FY20.

* Foot Locker expects to close both the deals late in the third quarter of FY21 and to be accretive to earnings per share in FY21.

* The company plans to fund the transactions with available cash. It held $1.96 billion in cash and equivalents as of May 1, 2021.

* Price action: FL shares are trading lower by 1.58% at $56.16 on the last check Monday.