Amer Sports is focusing its portfolio by selling off its Mavic cycling business.
PRESS RELEASE: Amer SportsAmer Sports has entered in an exclusivity period with
Regent, a US based global private equity firm, for the sale of the shares and related cycling business of Mavic S.A.S. The project for this sale will now be presented to the relevant employee representative bodies. The completion of the contemplated transaction and the transfer of ownership is expected to occur during the second quarter of 2019.
The intended divestment of Mavic follows Amer Sports’ comprehensive strategic review process on the 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.
| 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% of our sales and which has distinct business drivers and little synergies vs. 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.—Heikki Takala, President and CEO of Amer Sports |
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.
And he’s not a dentist
Crankbrothers new synthesis rims actually look really promising (that is as difficult to type as it is to say with a straight face), and the warranty states, “if you break it while riding” it will be replaced. In the past they were generally better at warranty than development. If they get both right on this one, it’s a win.
I agree that some companies actually back up what they put into print which can only build confidence in the brand.
Corporate BS Generator
That said, thanks a lot for this one. Bookmarked it!
I went to the Generator and I got:
"competently disintermediate best-of-breed partnerships"
How appropriate...
My Mavic shoes have also been awesome - the only Mavic product I haven't regretted buying in 20yrs...
So Regent, what we really want to know is what is your discount rate, and your payback period. Oh and reasonable equity beta would be nice to know too. Too soon? Yeah suck it up and get off our land. Mavic never was a short term bet.
Evidence is in this very comment thread. Are you reading this Mavic?
Their so called ERD (if you can find a number) is without nipple thickness, while that makes some sense they shouldn't call it ERD but rather NSD (nipple seat diameter) or something so spokes won't end up a few my short. List both and don't patronize you're customers, people buying and building at home are looking for info don't make it to be some kind of secret.
"Amer Sports has reported its Cycling business as discontinued operations for full year 2018."