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Published
Sep 6, 2018
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Amer Sports to explore strategic options for cycling brand Mavic

Published
Sep 6, 2018

Amer Sports, the Finnish owner of sports brands including Salomon and Arc’teryx, has placed its cycling clothing brand Mavic under strategic review in an effort to streamline its portfolio and boost growth, it announced on Thursday.

Mavic


The company is pursuing faster growth, higher profitability, and better asset efficiency as part of an updated strategy after sales fell by 4.6% in the first half of the year.

It will continue to drive sustainable profitable growth and prioritise the acceleration of its Softgoods brands (apparel and footwear), and its Business to Consumer, China, United States, and digitalisation targets. This will be supported by the integration of Peak Performance, a Swedish outdoor clothing brand it acquired in April for 255 million euros ($309 million).

The company will also undertake a strategic review of its fitness equipment and sports watch businesses in the mid-term after they complete their strategy cycle. These businesses include the Suunto brand of sports watches.

“We have continued to deliver sustainable profitable growth and solid value creation. Our strategy is proven, driving both continuous improvement and targeted transformation. The company profile is today increasingly attractive with especially Softgoods, B2C, and China growing to significant weight in the portfolio and contributing disproportionally to our value creation,” said President and CEO Heikki Takala.

“Going forward we continue to capitalize on the proven strategy whilst accelerating our portfolio transformation towards areas of faster growth, higher profitability, and better asset efficiency. Now we accelerate further in Softgoods through Peak Performance, and we also review the portfolio focus opportunities as we place the Mavic Cycling business under strategic review. Next, we will complete the current strategy cycle of the Fitness and Sports Instruments businesses, both of which have positive momentum, and assess the alternatives for realizing their maximum potential.”

Amer Sports’ portfolio also includes Wilson, Atomic, Precor and Armada.

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