Salomon to be sold to Amer Sports Corporation
Written by Dan Morgan, Monday, 02 May 2005adidas-Salomon to sell Salomon to Amer Sports Corporation
Herzogenaurach / Helsinki – adidas-Salomon AG announced today that it has entered into a sale and purchase agreement to sell its Salomon business segment, including the related subsidiaries and brands Salomon, Mavic, Bonfire, Arc’Teryx and Cliché, to the Amer Sports Corporation. The transaction values the segment at approximately € 485 million based on year-end 2004 figures. The final cash purchase price will be adjusted to reflect changes in capital employed. In addition, adidas-Salomon and Amer will enter into collaboration agreements in order to ensure a smooth transition. 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."
"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," says Roger Talermo, CEO and President, Amer Sports.
"We have enjoyed being part of the adidas-Salomon Group for the last eight years in which Salomon developed leading positions both in the winter and summer sports market for Freedom Action Sports,” stated Salomon President Jean-Luc Diard. “We are well positioned for further growth in all areas of our business. We are excited about joining the Amer Sports Corporation given its competencies in the winter sports market. This new partnership will help us to leverage the full potential of our family of brands."
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 and the Amer Sports Corporation have agreed to cooperate closely to ensure a smooth transition for Salomon.
Based in Herzogenaurach, Germany, 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 € 6.5 billion and posted a record net income of € 314 million, with 17,023 employees worldwide. adidas-Salomon AG will remain the company’s name for the time being. During the transition phase all the necessary steps will be taken to change the name to adidas AG. The name change will be subject to shareholder approval at the 2006 Annual General Meeting.
Headquartered in Annecy, France, in 2004 Salomon posted sales of € 653 million, achieved an operating profit of € 9 million (after a restructuring charge of € 19 million) and employed 2,769 people. The Salomon family of brands consists of Salomon (winter sports including skis, snowboards, ski boots and bindings and summer sports including inline skating, hiking footwear and apparel), Mavic (bicycle components), Bonfire (snowboard apparel), Arc’Teryx (technical outdoor wear) and Cliché (skateboards as well as footwear and apparel).
Amer Sports (www.amersports.com), based in Helsinki, Finland, is one of the world’s leading sports equipment companies with internationally recognized brands including Wilson (racket and team sports equipment and golf), Atomic (winter sports equipment), Suunto (sports instruments) and Precor (fitness equipment). All Amer Sports companies develop and manufacture technically advanced products that improve the performance of active sports participants. The Group’s business is balanced by its broad portfolio of sports and presence in all major markets. In 2004 the Company reported, under IFRS, earnings before interest and taxes of € 100.5 million on net sales of € 1,035.9 million. Earnings per share from continuing operations were € 0.96. At the end of 2004 the Company had 4,066 employees.