Puma

Puma, the Germany-based international athletic footwear company, was the largest entity within the Aritmos group and, after nine years of consecutive losses, also the organization with the most serious problems. Proventus installed a new, young management team. After redefining the business concept, a restructuring plan was formulated and executed with the aim of streamlining Puma by closing plants, out-sourcing production, reducing over-head costs, decentralizing responsibility in profit-centers and radically improving inventory and working capital management. Within a year, Puma was able to re-emerge with a new, profitable and competitive structure.

Because of several layers of shareholder contributions, several classes of shares and accrued dividends, the Puma share was difficult to value. As Puma returned to profitability and proved its competitiveness, the company was re-introduced to the capital market through a global secondary and primary offering of shares, with a one share, one vote structure and no complicating issues.

As a result of the successful share offering in 1996, Proventus’ shareholding was reduced from 82% to 25%. To improve its presence in the North American market, which was regarded key for Puma’s future success, it was decided that Puma needed a strategic partner in the United States. A strategic alliance was formed late in 1996 when Proventus sold half its Puma holding to a US investor in a related industry. The same investor acquired Proventus’ remaining holding in November 1997 and became Puma’s main shareholder.

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"How Proventus got Puma back on track"