To ‘accelerate its cycling business’, Amer Sports Corporation has acquired ENVE Composites, based in Utah, USA. ENVE is a fast-growing brand in high-end carbon wheels, components, and accessories for road and mountain biking with annual sales of approximately US$30 million.
Major sporting goods business, Amer Sports, which owns brands such as Mavic and Suunto, was on the acquisition trail last year when it strengthened its digital engagement capabilities through the acquisition of Sports Tracker in May 2015, a digital sports application and online service.
A release from Amer Sports stated that ‘the acquisition accelerates Amer Sports’ cycling business especially in the United States and provides further expansion opportunities internationally. ENVE brings capabilities in carbon technology, and it offers operational scale and synergy benefits complementing Amer Sports’ cycling operations.’
The acquisition price is US$50 million in an all-cash transaction. The acquisition will reportedly ‘have no material impact on Amer Sports’ 2016 financial results, and it will be accretive to Amer Sports EBIT margin as of 2017.’ The closing of the acquisition is expected in the first quarter of 2016.