Amer Sports Sells Mavic to U.S. Private Equity Firm
HELSINKI, Finland – After announcing its intention to sell its bicycle business as part of its group portfolio, stock-listed Amer Sports Oyj has now entered into an exclusive agreement with global private equity firm Regent, LP to sell Mavic S.A.S. The purchase price is not disclosed. Amer Sports second bicycle component brand Enve is not included in the sale.
The completion of the contemplated transaction and the transfer of ownership is expected in the second quarter of 2019. The acquisition of Mavic will probably be completed before the planned Amer Sports takeover by the Hong Kong investor consortium led by Anta Sports.
‘Already a discontinued operation’
According to a Amer Sports press release the intended Mavic sale follows; “Amer Sports’ comprehensive strategic review on the cycling business, which we announced while updating our strategy in September 2018”. The divestment has no impact the results of Amer Sports’ continuing businesses. The Finnish sporting goods giant has already reported its cycling business as “discontinued operations” for full year 2018.
“As part of our strategy we continue to focus the group portfolio and capabilities towards areas of faster growth, better profitability, and scalability. Over the past cycle we have concluded that we are not the best owner for Mavic which only represented approximately 3 percent of our sales and which has distinct business drivers and little synergies versus the broader group. We believe that the iconic Mavic brand has strong potential, which would be better realized as part of Regent. Amer Sports continues to capitalize on its strategic priorities, especially Softgoods, Direct to Consumer, China, and United States”, comments Amer Sports President and CEO Heikki Takala.
Amer wants to leave bicycle industry
It is remarkable that Amer Sports communicates its intention to divest its cycling business, it only mentions Mavic in the press statement. What about the second bike component brand Enve, which belongs to Amer Sports too?
Amer Sports Investor Relations & Financial Communication Director Samppa Seppälä, explained to Bike Europe’s that, “the U.S. brand Enve is not part of the takeover by Regent, LP. There is currently no change at Enve.” At the present time he was not able to answer whether it should be sold in the course of the announced withdrawal of Amer from the cycling business.