Korean Company Set to Buy K-Swiss

Sportswear brand K-Swiss has announced that South Korea-based fashion and retail company E.Land World will acquire all of the outstanding common stock of K-Swiss for US$4.75 per share in cash, or a total equity value of approximately US$170M.

The offer price is a 49 percent premium to K-Swiss’ closing stock price of US$3.19 Wednesday on the over-the-counter market.

The agreement will see K-Swiss stockholders receive US$4.75 in cash for each outstanding Class A and Class B share of the company’s common stock they own. The deal is expected to close during the second quarter of 2013.

K-Swiss is probably best known for tennis shoes. The company hired Anna Kournikova as a brand ambassador in February 2007 shortly before she retired from professional tennis having never won a major tournament. Kournikova was replaced by fictional baseball player Kenny Powers in 2010.{jcomments on}