In the early 20th century, brothers Rudolf and Adolf Dassler were partners in a small shoe factory in a quiet German town, making sports shoes for local athletes. Each of them dreamed of building a global industry. However, a severe disagreement between them over the company's management and strategy turned everything upside down. Rudolf decided to split and create 'Puma', while Adolf launched his own company, 'Adidas', just a short distance away. Over decades, Puma successfully built a global legacy, from running shoes to football boots, but it faced significant challenges in recent years. Its excessive focus on lifestyle products over athletic performance caused it to fall behind in the race of global sportswear brands, especially against 'Adidas' and 'Nike', and with the emergence of new brands like 'On Running' and 'Hoka'. As a result, the company was forced to cut its product range and eliminate 900 administrative jobs by the end of 2026, while its shares continued to drop by 80% since 2021. The Chinese Rescue: 'Anta Sports'. Chinese company 'Anta Sports', which owns strong brands like 'Wilson' and 'Salomon', announced last week its acquisition of a 29% stake in 'Puma' for $1.78 billion. This deal represents more than just a financial investment; it is a strategic move for Puma towards Asia, particularly the vast Chinese market. It's an opportunity to rebalance the German brand's heritage with Chinese marketing expertise and open new horizons for global growth. Anta's valuation of Puma is about $6.2 billion, roughly double Puma's projected 2027 sales, according to 'Visible Alpha' analysts—a relatively low price compared to its competitors, including 'Adidas', 'Nike', and Swiss company 'On'.
