‘Mavic To Develop into Premium Full Cycling Brand’
ANNECY, France – Amer Sports has completed its divestment of Mavic SAS. The Finnish sporting goods manufacturer has finalized the sale of its French bike subsidiary to private equity firm Regent LP. This prompted Mavic President Gary Bryant to issue a statement in which he says “Regent LP has confirmed its support to the existing Mavic business strategy around developing a premium full cycling brand globally.”
Amer Sports announced beginning this year that it intended to sell Mavic as well as its other cycling business ENVE, based in the US. It is part of the parent company’s “Comprehensive strategic review on the cycling business,” announced in September 2018. The Finnish sporting goods giant already reported its cycling business as “discontinued operations” for full year 2018.
Dropped sales due to lower OEM orders
The Mavic divestment has been prompted by dropped 2018 sales that came after an already disappointing 2017. For the first quarter of 2018 Mavic and ENVE posted total sales of 32.1 million euro. It accounted for a big 12 percent drop. The reason behind this big sales decline was according to Amer Sport that both companies had to deal with lower OEM orders compared to the previous year.
Accelerating development plans
According to President Gary Bryant, who joined the company in September 2017, Mavic will, with the support of Regent LP “Accelerate product and development plans. Guided by our brand strategy and focus on service, quality and performance. We will continue to refine our product offering, develop an even sharper focus on our consumers, simplify our business and invest in our infrastructure.
Currently Mavic has a staff of about 250 employeesglobally. The company is based in French Alps and manufacturing primarily in Europe and France.
According to President Gary BryantMavic’s business is “Healthily balanced between Aftermarket and OEM with a product portfolio consisting of wheels, footwear, apparel and helmets.”
No changes in day-to-day business
Furthermore, President Bryant claims “This change in ownership will enable us to re-focus and drive our strategy across all our channels and regions, securing a bright future for the Mavic brand. As part of the transaction process and negotiation agreement, for the next 3 years, there is strictly no change regarding day-to-day business around development, supply or financial matters.”
Amer Sports has not found a buyer yet for its ENVE business.