China’s Anta Sports considers selling its fitness brand Precor

Bloomberg

Anta Sports Products Ltd is considering a sale of its fitness equipment brand Precor Inc after receiving approaches from potential buyers, according to people familiar with the matter.
The biggest sportswear maker in China is working with an adviser for a potential sale of the US business that could fetch about $500 million, said the people, who asked not to be identified because the discussions are private. A number of companies and private equity funds have shown preliminary interest in acquiring Precor, which designs and makes gym products such as indoor cycling bikes, running treadmills and elliptical machines, the people said.
Anta acquired Precor through its $5.2 billion purchase of Finland’s Amer Sports Oyj, which was completed in September. The deal counted Chinese buyout firm FountainVest Partners, Chip Wilson, the billionaire founder of yoga-apparel retailer Lululemon Athletica Inc, and Chinese internet giant Tencent Holdings Ltd as co-investors.
While Anta is keen on building and expanding most of the brands it acquired from Amer, fitness equipment isn’t among the core assets for its growth strategy, the people said. A sale process of Precor could start as soon as next year, one of the people said.
Deliberations are at an early stage and there’s no certainty it will lead to a deal, the people said. A representative for Anta declined to comment.
Shares of Anta have jumped about 101% this year in Hong Kong, the best performer on the Hang Seng Chinese Enterprise Index. The stock climbed 0.9% as of 2:34 pm local time, giving the company a market value of about $26 billion.
Founded in 1980, Woodinville, Washington-based
Precor created the first cushioned treadmill, according to its website.
The company supplies to fitness clubs, hotels and schools in more than 90 countries.