New York -- Foot Locker Inc. said Wednesday that it will buy German athletic store chain Runners Point Warenhandelsges (RPG) for 72 million euros ($94 million) as it expands in Europe.
RPG, which had sales of $254 million for 2012, operates more than 200 stores — with its most prominent banners being Runners Point and Sidestep — as well as an online subsidiary, Tredex. Most its stores are in Germany, although there are also Runners Point and Sidestep locations in The Netherlands, Austria, and Switzerland.
"We are excited to be adding Runners Point, a fast-growing, multi-format and multichannel business, to our already-strong European operations," said Ken C. Hicks, chairman and CEO of Foot Locker, which operates 3,335 stores in 23 countries in North America, Europe, Australia, and New Zealand. "This acquisition will enhance our position in Germany, the strongest economy in Europe, and also provide us with additional banners to further diversify and expand our European business. We also intend to leverage Tredex's strong digital capabilities to accelerate growth in our own developing European e-commerce business."
RPG is currently majority owned by the private equity firm HANNOVER Finanz. The company's CEO, Otto Hurler, and CFO, Harald Wittig own the balance of the chain. Both Hurler and Wittig, along with other members of senior management, will remain with the company post-acquisition.
The transaction is subject to review by merger control authorities in Germany.