Amer Sports Now Actively Searching for Mavic and Enve Buyer
HELSINKI, Finland – Amer Sports has published its financial 2018 report in which the company announced that it is now actively seeking for a potential buyer of its Cycling asset, consisting of Mavic (wheels, rims, tyres, apparel and foortwear) as well as Enve (wheels, hubs, bars, stems, posts and forks). Amer’s 2018 financial report no longer specifies the financials of the two companies.
Last September Amer Sports announced its decision to place its Cycling business “Under strategic review”. Following this decision, the company started to assess the market interest for its two cycling companies.
Deteriorating results Mavic & Enve
Mavic and Enve no longer fit in Amer Sports’ strategy to pursue sustainable, profitable growth. The company is prioritizing acceleration in soft goods, B2C, China, United States, and digitalization. It comes after 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.
Cycling business is 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.
Amer Sports 2018 net sales grew by 4 percent to 2.7 billion euro.