Amer Sports Takeover by Chinese Companies Becoming More Likely
HELSINKI, Finland – It started with Amer Sports’ announcement that it wants to sell its activities in the cycling market with Mavic and Enve on 5 September. Now it looks like the entire Finnish holding will be sold to the Chinese companies ANTA Sports Products and FountainVest Partners. Amer Sports last week’s trading update indicates that there are movements taking place that can eventually lead to the Chinese companies taking over all shares in Amer Sports.
What Amer Sports last week’s trading update also made very clear is that there is no reason at all for the sale of the complete holding company of some of the most recognized sports brands in the world. Net sales stood in July – September 2018 at € 757.2 million; up by 9% with organic growth of 3%. In the first nine months of this year Amer Sports’ net sales increased by 5% in local currencies with organic growth at 3%. Sales totaled € 1.8 billion. The company’s brands are (among others) Wilson, Atomic, Salomon, Arc’teryx, Mavic, ENVE, and PeakPerformance.
ANTA Sports & FountainVest Partners
ANTA Sports Products Ltd is turnover-wise twice the size of Amer Sports. Listed ANTA Sports recorded 2.1 billion euro turnover in 2017 and marketed its Fila, Descente, Sprandi, Kingkow, Kolon Sport and NBA branded sports products through 11,000 stores in China.
FountainVest Partnersclaims to be “A leading private equity firm investing in companies that benefit from China’s growth, now managing total assets over USD 4.5 billion.”
‘Possible recommended transaction’
ANTA Sports Products and FountainVest Partners placed a bid of 40.00 euro per share for all of shares in Amer Sports. The company’s 25 October trading update indicates that this bid by the Chinese is very seriously being considered. The trading update says “On October 11, Amer Sports confirmed that there have been certain discussions between Amer Sports and the consortium and their respective advisors intended to ascertain whether there is a basis to commence a more formal process to facilitate a possible recommended transaction.” Yesterday, Amer Sports’ shares trade for € 31.50 at the Helsinki stock exchange.