Signa Sports United is reportedly nearing an investment worth more than $370 million from a group that includes Saudi Arabia’s sovereign wealth fund — the Public Investment Fund.
The German bike and tennis equipment retailer went public earlier this year via a SPAC merger with Yucaipa Acquisition Corporation, a company led by Pittsburgh Penguins co-owner Ronald Burkle. The merger, which is expected to close by the end of the year, values Signa at $3.2 billion.
The funding would go toward expanding Signa’s presence in the U.S., which the retailer estimates will account for 9% of its $1.6 billion in net revenue for the fiscal year ended Sept. 30.
- That number assumes Signa completes its acquisition of cycling store Wiggle — a deal that was announced alongside its SPAC merger — and Tennis Express, an online retailer. Wiggle has annual sales of roughly $500 million.
- Signa already operates tennis retailer Midwest Sports in the U.S.
In the past year alone, the PIF has purchased England’s Newcastle United soccer team for $409 million, taken part in a $758 million investment round in The McLaren Group, and acquired $3.3 billion worth of video game stock in Activision Blizzard, Electronic Arts, and Take-Two.
By 2030, the wealth fund estimates it will be managing $2 trillion in financial assets.
