Amer Sports Wants to Sell Mavic and Enve
HELSINKI, Finland – Mavic and Enve no longer fit in Amer Sports’ strategy to pursue sustainable, profitable growth. “We prioritize acceleration in soft goods, B2C, China, United States, and digitalization,” said Amer Sports President and CEO Heikki Takala this morning while he announced the company’s updated strategy.
This updated strategy includes the sale of the holding company’s activities in cycling. This is triggered by continuous deteriorating results of Mavic and Enve. For the first half of 2018 Amer Sports reported that sales of its cycling division declined by 13 percent to 60 million euro. Across all its divisions, Amer Sports saw first half year sales increase by 2 percent, to 1.1 billion euro. “We are looking for somebody who can better look for Mavic’s and Enve’s assets,” announced Heikki Takala.
Mavic and Enve no longer fit in growth strategy
The Amer Sports CEO further explained “We have continued to deliver sustainable profitable growth and solid value creation. Our strategy is proven, driving both continuous improvement and targeted transformation. The company profile is today increasingly attractive with especially soft goods, B2C, and China growing to significant weight in the portfolio and contributing disproportionally to our value creation. Going forward we continue the proven strategy whilst accelerating our portfolio transformation towards areas of faster growth, higher profitability, and more efficiency. We think this is also the moment to place the Mavic cycling business under strategic review.”
Mavic became part of Amer Sports Corporation in 2005 when the Finnish company acquired Salomon based in Annecy, France. Included in that deal were a line of brands like Salomon, Bonfire, Arc’Teryx, Cliché – and its bicycle component brand Mavic. In February 2016 Amer Sports added Enve Composites to the cycling group “to accelerate our business especially in the United States and provide further expansion opportunities internationally.” However, the expected growth of the company’s cycling business never materialized. In Amer Sports’ statement on the take-over of Enve the company reported a turnover of USD 30 million (25.8 million euro) in 2015. In that same year Mavic generated total sales of 138.5 million euro. However, the cycling division could not benefit from any synergy between the two companies. For 2017 Amer Sport reported a turnover of 134.3 million euro for its cycling division, a 18 percent drop compared to 2015. The declining turnover trend for Mavic and Enve continued in the first half of 2018.