Anta Sports makes bid for Finland’s Amer Sports
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Anta Sports makes bid for Finland’s Amer Sports

Chinese sporting apparel company Anta Sports has made a generous bid for Finland’s Amer Sports. Anta is one of China’s homegrown success stories, competing against big global players like Nike, and riding a wave of popularity as Chinese consumers embrace the type of health and fitness lifestyle that goes along with sporting apparel. Now, the company is looking to make a dent in the higher end of the market, having already had success as the local distributor of FILA.

Anta’s share price was making solid gains until trade war rhetoric weighed it down

graph 1409 antasport

SOURCE: Yahoo Finance

Assuming the deal goes through, Amer will be a strong contributor to that strategy. The company is responsible for Wilson tennis rackets and Salomon hiking boots, amongst other up-market brands. According to the Financial Times, Amer is valued at “about” 3.4 billion Euros.

The all-cash buyout from Anta in conjunction with Hong Kong-based private equity firm FountainVest Partners is non-binding, and subject to the fulfilment of a number of conditions, including “financing, recommendation from [Amer’s] board of directors, and approval from at least 90% of [Amer’s] shareholders.” Amer’s share price rose by as much as 14% on the news.

The bid comes as the Chinese government is pursuing greater engagement amongst the population for a host of sports, from soccer to skiing, as well as an expansion in the industries that facilitate it, such as sporting apparel makers. The country will host the Winter Olympics in 2022, offering ample opportunity for sales of skis and snowboards, and the 2020 Summer Games in Tokyo could provide a boost for Amer’s sunnier brands.

Disclosure

Dominion holds Anta Sports in its Global Trends Luxury Fund.


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