Huf Holdings sells 90% stake in $63 million deal

Japanese apparel group TSI holdings announced on Tuesday its plan to acquire a 90% ownership of Huf Holdings’ skate brand Huf for $63 million. The acquisition of the stake is expected to be completed by December 14.

TSI holdings subsidiary Jack, which has also been the distributor of Stüssy since 2015, has acquired the distribution rights to Huf in Japan.

Huf currently operates 3 stores in Japan with an annual turnover of 400 million yen, but aims to replicate the success of Stüssy by implementing the same model and thus reach a turnover of 3 billion yen within the next 5 years.

The group described the acquisition as a proactive growth strategy targeting the growing streetwear market.

"Skateboarding is now an official sport at the Tokyo Olympic Games, so from now on the number of competitors may increase. I’d like to expand the company simultaneously in China, not just in Japan," said TSI Holdings President Tadashi Saito. The company is pursuing a joint venture with a leading apparel company in China for that aim, and plans to almost  double the brand’s overseas sales from 5.1 billion yen to 10 billion in the next five years.

The Huf brand, founded by skateboarder Keith Hufnagel in San Francisco in 1992, is expanding its current network of 30 countries and is expected to be able to strongly develop its network in Asia over the coming years.