France-based retail and luxury goods company PPR, which counts names such as Gucci amongst its brands, has entered into an agreement, through its subsidiary Sapardis, with Mayfair  Beteiligungsfondsgesellschaft I mbH to acquire its 27.1% stake in German sports brand Puma for €330 per share in cash excluding the 2006 dividend of €2.5 per share, implying a total consideration of €1.4 billion. Following this acquisition, PPR intends to launch a friendly takeover offer in cash on the remaining outstanding Puma shares at the same price of €330 per share.

The management board of Puma is said to fully support this transaction and intends to recommend the offer after a review.

Commenting on the transaction, Francois-Henri Pinault, chairman and CEO of PPR, said, "I am delighted to have reached an agreement with Mayfair supported by Puma which creates the basis for a combined future for our two groups. This friendly transaction represents an exciting development for PPR and a milestone in our strategy of profitable growth.”

Jochen Zeitz, chairman and CEO of Puma AG, said, "As we continue the execution of our Phase IV strategy, we are convinced that PPR's proposal is a unique opportunity to get additional long-term support to achieve our global targets and our mission to become the most desirable sportlifestyle company in the world.“

The transaction is subject to EU antitrust clearance and other customary conditions and regulatory approvals expected by beginning of June.