German sportswear giant Puma has acquired the entire stake of its local partner Knowledge Fire from their joint venture, making Puma India Retail its fully owned subsidiary.
The Economic Times, which reported the development citing a person it didn't name, said that the multinational firm acquired a 49% stake in the JV held by Knowledge Fire.
The deal means Puma will now solely run nearly 40 company-owned outlets, which was earlier operated by the local entity.
Email queries sent to Puma and Knowledge Fire didn’t elicit any immediate response.
The decision came after Puma received government approval last week for a wholly owned single-brand entity in India. Puma and rival Adidas had sought government permission early this year for single-brand retailing and e-commerce businesses. Adidas received the approval in July .
The report said that Puma Sports India, originally a wholesale supplier of products to franchisees, will now become the main entity that will carry out the business in the country.
The footwear segment in the country has seen a handful of deals in the recent past. Private equity firm WestBridge Capital Partners added Relaxo Footwears Ltd as its third new portfolio company this year while women's footwear maker Catwalk Worldwide Pvt. Ltd roped in a larger industry peer as a strategic investor.
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