The sale of Amer Sports to a consortium of Asian private equity investors has edged closer. On December 7, 2018, Mascot Bidco Oy – members of an investor consortium including ANTA Sports, FV Fund and Anamered Investments – and Amer Sports signed an agreement.
The agreement outlines the terms of a tender offer. This values the entire issued and outstanding share capital of Amer Sports at €4.6 billion. The Board of Directors of Amer Sports has decided to unanimously recommend that Amer Sports’ shareholders accept the tender offer.
Under the agreement, Mascot Bidco Oy will make a voluntary recommended cash tender offer for all of the issued and outstanding shares in Amer Sports, excluding shares held by Amer Sports and its subsidiaries.
Back in September, having confirmed it was considering the sale of its Mavic and ENVE cycling operation, Amer Sports received an indication of interest from a consortium including Chinese sportswear company ANTA Sports Products.
It has been confirmed that the investor consortium is comprised of:
- ANTA Sports Products Limited
- FV Fund (an investment vehicle managed by FountainVest Partners)
- Anamered Investments (an investment vehicle owned by Chip Wilson) and
- Tencent (investing through Tencent SPV as a limited partner in FV Fund)
The consortium has been formed via the company Mascot Bidco Oy for the purposes of the voluntary recommended public cash tender offer for all the issued and outstanding shares in Amer Sports.
ANTA Sports, FV Fund, Anamered Investments and Tencent indirectly will own 100% of Mascot Bidco Oy upon completion of the tender offer.
The offer price under the tender offer is €40.00 in cash per Amer Sports share.
The offer price represents a premium of 39% compared to the closing price of Amer Sports shares on September 10, 2018 (the day prior to Amer Sports confirming the receipt of a non-binding preliminary indication from ANTA Sports and FountainVest). It is a premium of 43% compared to the volume-weighted average price of Amer Sports shares during the 3-month period prior to, and up to, September 10, 2018.
‘The investor consortium intends to invest significant time, resources and effort in helping Amer Sports to accelerate several important ongoing and new strategic initiatives under private ownership, including expanding Amer Sports’ businesses in the Chinese market.
‘This includes investing capital and resources in product development and human talent on a global basis to provide Amer Sports’ existing management team and employees with the optimal platform from which to implement its medium- to long-term strategic plans. In doing so, Amer Sports will not only grow into a broader platform for Amer Sports’ employees to thrive on, but will also form stronger, mutually beneficial partnerships with all its stakeholders.’
The investor consortium intends to provide Amer Sports with access to ANTA Sports’ extensive distribution network, R&D resources and manufacturing and sourcing capabilities in China, such that Amer Sports will have a significant opportunity to accelerate the expansion of its businesses in the Chinese market.
After the completion of the tender offer, the investor consortium plans for Amer Sports to be operated independently via ANTA Sports, with a separate Board of Directors. The investor consortium has invited Heikki Takala (President and CEO of Amer Sports) and his key executives to continue leading the business.
‘Under the new ownership, Amer Sports’ management team would have the autonomy to execute on its business plan under the strategic direction of the Board of Directors.
‘The completion of the tender offer is not expected to have an immediate material effect on the operations, assets, the position of the management or employees or the business locations of Amer Sports.’
The investor consortium currently expects to retain Amer Sports’ corporate head office in Helsinki after the completion of the tender offer.
Ding Shizhong, Chairman and CEO of ANTA Sports, said “We are delighted about the opportunity to invest in Amer Sports, a leading sporting goods company with a strong portfolio of internationally-recognized brands. Sports is a common language that connects people across the globe and transcends different cultures and backgrounds.
“We share the same passion as Amer Sports’ management in providing excellent products, services and experiences that inspire sports lovers’ achievements and enjoyment, as well as setting the standard for innovation. In particular, we are excited to bring these premium international brands and products to Chinese consumers, who increasingly seek high-end products with outstanding qualities and heritage in various niche and specialized sports segments.”
He continued, “Working closely with the other investor consortium members, we are fully committed to backing Amer Sports’ talented management and employee team to stay true to its premium brand value as it accelerates into the next stage of growth under the investor consortium’s ownership.”
Frank Tang, Chairman and CEO of FountainVest, commented “We are excited about our partnership with ANTA Sports, Tencent and Anamered Investments on this landmark transaction. We deeply respect and value the successful heritage of Amer Sports’ global brands. We are honoured to be working with Amer Sports’ management team and employees to chart its continued growth in this next phase of development.
“The investor consortium shares a common long-term vision to invest further resources to expand the presence of Amer Sports’ business and provide the highest quality products to consumers around the world.”
Chip Wilson, Chairman of Hold It All, and owner of Anamered Investments, added, “Amer Sports owns an attractive portfolio of brands that I have admired and used in my day to day life. I am excited to have this opportunity to help their brands grow globally and to see Amer Sports lead the way in the evolution of the athletic apparel industry as a whole. Amer Sports’ brands have exceptional potential for growth in an environment that is increasingly valuing quality, technically oriented soft goods.
“I believe there to be great alignment between my own beliefs and those of Mr Ding and the other members of the investor consortium with respect to the future direction of the global retail industry and the growth prospects for Amer Sports. The members of the investor consortium share a common philosophy and have backgrounds and capabilities that are highly complementary and these will be of considerable benefit to Amer Sports.”
Martin Lau, President and Executive Director of Tencent, said, “We are pleased to be a member of the investor consortium and a strategic partner of Amer Sports and ANTA Sports, two superior companies in the athletic goods industry. With their great products, well-recognized brands and strong retail presence, we look forward to facilitating them to enhance their operational efficiency and capture the future growth opportunities via our smart retail initiatives supported by our advanced technologies and large user base on our social platforms.”
Bruno Sälzer, Chairman of Amer Sports, said “Amer Sports has developed into a leading global sporting goods company with a portfolio of highly attractive brands. We are proud of what Amer Sports has achieved over time, and are very grateful to the management team and our people for all of their contributions.”
He continued, “The offer from the investor consortium represents an attractive proposition for our shareholders with a significant cash premium and, in our view, is in the best interests of our shareholders. The Board of Amer Sports is encouraged by the investor consortium’s focus on implementing a strategy at Amer Sports that is focused on growth, and their expectation of no immediate material effect on our people or operations.”
Heikki Takala, President and CEO of Amer Sports, added “I would like to thank all of our people for building Amer Sports into what we are today – a leading global sporting goods company with a strong track record, great brands and a world-class organization. The offer from the investor consortium represents an acknowledgement of the work we have done, and their plan to keep Amer Sports as an independent company signals a strong confidence in our strategy and business model.
“Under the ownership of the investor consortium, there is an opportunity to continue to deliver our strong sustainable profitable growth with further acceleration in our strategic priorities including soft goods, direct-to-consumer and China. This acceleration provides further exciting opportunities for our people globally. I am pleased that the existing management team has been invited to continue leading the business, and also that the investor consortium is committed to retaining our Helsinki corporate head office.”
Amer Sports’ portfolio of brands includes Salomon, Arc’teryx, Peak Performance, Atomic, Mavic, ENVE, Suunto, Wilson and Precor.
