Amer Sports has entered in an exclusivity period with Regent, a US based private equity firm, for the sale of the shares and related cycling business of Mavic. In a release, the company noted that ‘this sale will now be presented to the relevant employee representative bodies’.
The completion of the anticipated transaction and the transfer of ownership is expected to occur during the second quarter of 2019. Financial terms were not disclosed.
The intended divestment of Mavic follows Amer Sports’ strategic review process on its cycling business, which the company announced while updating its strategy in September 2018…
The divestment would not have impact on the results of Amer Sports’ continuing businesses. Amer Sports has reported its cycling business as discontinued operations for full year 2018.
Also included in Amer Sports’ cycling operation is the ENVE wheels and accessories brand, which it acquired for US$50 million in 2016. The September 2018 strategic review for the company’s cycling business also indicated that a disposal of the ENVE brand was on the radar. The company stated that it was looking for parties who could ‘better look after Mavic’s and ENVE’s assets.’
“As part of our strategy we continue to focus the group portfolio and capabilities towards areas of faster growth, better profitability, and scalability,” said Heikki Takala, President and CEO of Amer Sports.
“Over the past cycle we have concluded that we are not the best owner for Mavic, which only represented approximately 3% 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.”
He added, “Amer Sports continues to capitalize on its strategic priorities, especially soft goods, direct to consumer, China, and the United States.”
Private equity firm Regent is focused on ‘innovating and transforming businesses across diverse industries including technology, consumer products, retail, industrial, and media and entertainment, and has a strong track record for redeploying and repositioning consumer brands.’