An employee tidies up shoes in the Puma factory outlet store in Herzogenaurach on April 10. - REUTERS

BERLIN (AP):

French luxury goods group PPR SA, owner of the Gucci and Ives Saint Laurent brands, announced it is buying a 27.1 per cent stake in Puma and plans to make a friendly takeover bid that values the world's third-largest sporting goods maker at US$7.1 billion.

PPR, said it was paying US$1.9 billion for the stake in Puma held by the Mayfair investment company.

"Following this acquisition, PPR intends to launch a friendly take-over offer in cash on the remaining outstanding Puma shares at the same price" of US$441.11 per share, PPR said in a statement. It said it expects to complete the offer in early July.

Puma welcomed the offer and said management would recommend it to shareholders.

Perfect partner

CEO Jochen Zeitz said in a statement that the company's board "is convinced that PPR, as one of the world's top fashion and retail companies, will be the perfect partner for Puma, one of the world's leading sport lifestyle companies. Both companies have a European background and ideally complement each other with regard to their global perspective," Herzogenaurach-based Puma said in a statement.

"We guarantee Puma's continuity as an autonomous company within the PPR Group," PPR Chief Executive Francois-Henri Pinault was quoted as saying in Puma's statement.

Pumaadded that "there will be no changes with regard to staffing."

Established in 1948, Puma is one of the world's biggest sporting goods companies after U.S.-based Nike Inc. and Adidas AG, which also is based in Herzogenaurach. It has some 7,800 employees.

Puma has been working to expand its reputation as a maker of lifestyle brands, clothes, shoes and accessories such as eyeglasses, and expand in more regions and categories.