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Bloomberg
China’s Anta Sports Products Ltd. is gearing up for the Beijing Winter Olympics four years from now with a 4.7 billion-euro ($5.5 billion) approach for one of the world’s biggest makers of ski equipment.
Amer Sports Oyj of Finland, which owns the Atomic and Salomon brands, confirmed a Bloomberg News report that it has received takeover interest from an investor group backed by the Chinese company, which already sells Descente winter-sports wear in China.
Under the non-binding approach, shareholders would receive a cash consideration of 40 euros a share, the Finnish company said in a statement. The shares jumped as much as 14 percent in early Helsinki trading before the confirmation.
The move comes amid a Chinese government-led push to expand in sports ranging from soccer to skiing, as well as the industries that supply equipment for competitors and weekend enthusiasts. Beijing will play host to the Winter Olympics in 2022, providing a springboard for sales of skis and snowboards, while the 2020 Summer Games in Tokyo will offer a showcase for other Amer brands such as Wilson tennis rackets.
Amer’s portfolio of ski brands “perfectly complements Descente,†UOB Kay Hian analyst Robin Yuen said in a note, adding that the approach “is good timing to capture the hype of winter sports†ahead of the Beijing games.
The Anta-led investor group, which also includes Chinese buyout firm FountainVest Partners, is considering a cash tender offer subject to due diligence and other conditions, according to an earlier statement by Helsinki-based Amer. The Finnish company said it isn’t in negotiations with the consortium and hasn’t made any decisions related to the proposal.
Amer acquired Salomon and other brands from what was then known as Adidas-Salomon AG in 2005, adding the French label to Austrian brand Atomic, which Amer had acquired about a decade earlier.
The German sportswear giant retreated from winter sports amid a sluggish market for ski equipment, though Salomon’s sports shoes have been a hit since then.
Anta, China’s biggest athletic apparel producer, has held discussions with banks about a potential acquisition of Amer, people with knowledge of the matter said earlier.
Anta shares fell about 1.9 percent in Hong Kong. The Chinese company, which has a market value of $12.5 billion, has been working to expand its business overseas and is seeking acquisitions of well-established global brands. It is also scouting for business partners to help it enter the European market as soon as next year, James Zheng, Anta brand president, said.
Amer said earlier this month that it’s conducting a review of its Mavic cycling brand to focus on more profitable, faster-growing businesses. Over time, the company also plans to assess strategic options for its Fitness and Sports Instruments businesses, including standalone opportunities, as they grow towards their target scale.
Anta, which previously bought the greater China rights to the Fila brand, had $1.5 billion of cash and equivalents at the end of June, data compiled by Bloomberg show.
Amer’s other brands include Louisville Slugger baseball bats and Arc’teryx outdoor gear.
In the market for adventure clothes and footwear, the company competes with VF Corp. of the US, owner of The North Face and Timberland brands.