A Chinese consortium comprised of the big names in the industry offered to buy Amer Sports that owned American iconic brand Louisville Slugger as well as Wilson and Salomon brands for $5.2 billion.
Louisville Slugger is deeply entrenched in the American sports culture and considered a historical brand with a story dating as far back as the pre-World War One, about 133 years ago. There has been so much history in the brand that it operates factory and museum that welcome tourists to a 30-minute tour.
The Louisville Slugger bats are swing by 13 percent of MLB starters. Among the popular sports celebrities swinging the iconic brand are legends Babe Ruth and Jackie Robinson.
The consortium, Mascot Bidco Oy, is led by ANTA Sports. Its investors include Tencent Holdings Ltd, FV Fund managed by FountainVest Partners and Anamered Investments owned by Chip Wilson.
Mascot Bidco Oy offered 40 euros per share in cash of Amer Sports. In an announcement, Amer Sports said the offer price represents a premium of 39 percent compared to the closing price of Amer Sports shares on Sept. 10. The price also represents a premium of 43 percent compared to the volume-weighted average price of Amer Sports during the 3-month period to and up to Sept. 10.
Under the deal, Amer Sports would continue to conduct businesses independently of the consortium but would have access to Anta Sports' strong manufacturing capabilities, distribution network, R&D resources, and sourcing capabilities. Ultimately, Amer Sports hoped that the deal will allow its brands to expand in the Chinese market, capturing its billions of consumers.
Ding Shizhong, chairman and CEO of Anta Sports, said it has always been the company's aim to bring to the Chinese consumers the very best of the international brands. Amer Sports, with its outstanding quality, heritage, and stronghold of the sports culture, complement that goal, Ding said.
As for its decision to consider the offer of acquisition, Heikki Takala, president, and CEO of Amer Sports said it is the opportunity to continue to deliver its strong sustainable profitable growth with further acceleration in direct-to-consumer business strategy. Most importantly, the offer to buy will be provided Amer Sports an advantageous position in the Chinese market compared to its competitors. Apart from the business side, Amer Sports believed that its diversification to China will open equally bigger opportunities for its employees across the world.
Other internationally-known brands under Amer Sports' wings are Peak Performance, Atomic, Mavic, Suunto, Wilson, and Precor.
Summary: A Chinese consortium offered to buy Amer Sports, owner of Louisville Slugger, an iconic brand in American sports.
