BikeBiz Bicycle and cycling retail news
The transaction values the segment – grouped together as Salomon – at 485m based on year-end 2004 figures.
The sale is subject to antitrust authorities’ approval in the EU, the US and other relevant jurisdictions. The transaction is expected to complete by the end of September 2005.
"Salomon has been a great member of our Group. However, we decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market as well as the growing golf category," said adidas-Salomon chairman and CEO Herbert Hainer.
"We are convinced that the Amer Sports Corporation is an ideal partner to bring Salomon to the next level."
Roger Talermo, CEO and president, Amer Sports, said:
"Salomon’s offering fits perfectly with our own portfolio. The world’s leading Freedom Action Sports brands of Salomon open up great new potential for Amer Sports. In winter sports, Salomon and Amer Sports’ Atomic complement each other very well. Furthermore, the two companies and their brands support each other well in geographical terms, making our geographical coverage more balanced than before."
Salomon’s production-related restructuring program that was initiated last year will go forward as planned. Jean-Luc Diard will continue to lead the Salomon Group and will report to Roger Talermo, CEO and president of Amer Sports.
adidas-Salomon is the second largest sporting goods company in the world with its core brands adidas and TaylorMade-adidas Golf.
In 2004, adidas-Salomon achieved sales of 6.5bn and posted a record net income of 314m, with 17,023 employees worldwide. adidas-Salomon AG will remain the company’s name for the time being.
Salomon is based in Annecy, France, and posted sales of 653m, achieved an operating profit of 9m (after a restructuring charge of 19 million) and employed 2,769 people.
Amer Sports, based in Helsinki, Finland, owns Wilson, Atomic, Suunto compasses and Precor.
Mavic, with $130m turnover pa, is responsible for 13 percent of Salomon’s sales
According to the BOSS Report, Talermo said in a press conference that he finds the bike market very interesting and sees it as one of the growth drivers for Amer.
