Korean Youngone Acquires Scott Corp SA
SEOUL, South Korea – Sports equipment manufacturer Youngone Corporation increased its shareholdership in Scott Corporation from 20% to 50.01%.
Youngone Corporation paid a transaction price of KRW 108,530,000,000 (86.8 million euro) for the 3,751,250 shares of Scott. In 2013 Youngone already obtained a 20-percent stake in Scott investing USD 40 million. This investment was intended to strengthen the joint business in bicycles and ski’s as well as sporting goods items in the markets of China, Japan, and Korea. Until now Youngone had been an exclusive vendor of Scott bicycles in Korea, Japan, and China through a 100-percent subsidiary called Scott North Asia.
Youngone’s new investment in Scott Corp. originates in the Korean company’s strategy to grow its overseas business. Last year Youngone already took an 80-percent stake in a US outdoor apparel maker. According to a statement by Youngone the main reason to invest in overseas companies is based on their judgment that the domestic market has reached a saturation point and it must try to find new markets.
Youngone Holdings Company manufactures, markets, and exports a line of sports wear on an OEM basis. The company’s products include clothes for skiing, mountain climbing, and other sports activities. Youngone Holdings also produces sports accessories, such as gloves, backpacks, and sleeping bags.
World famous brand like Nike, Eddie Bauer, LL Beans, The North Face, Intersports, Polo Ralph Lauren, and Puma source their products from Youngone. Approximately 50% of the group’s sales is produced in Bangladesh.