Amer Sports, the sports equipment maker based in Finland, has been approached with a takeover bid of €4.6 billion or $5.3 billion by Anta Sports based in China and FountainVest a private equity firm.
If the deal were to be completed, shareholders at Amer would receive €40 per share in cash, said the Helsinki-based maker of Wilson tennis rackets, Salomon boots and Arc’teryx clothing on Tuesday. That helped lift shares of the sporting goods maker by 25%.
The second-largest Amer shareholder is a Finnish association that holds 4.28% and it said it is open to this proposition but would need additional time to give it a proper evaluation.
The head of the association Timo Maasilta said, “That at the right price everything is for sale.”
At the same time, the largest shareholder of Amer, KEVA the Finnish pension fund, did not comment about the approach made by Anta, which sells the Descente and Fila brands along with its own Anta label brand in China and has targeted Amer for a long time as it looks to expand overseas through acquisitions of other global brands that are well-established.
An analyst in the industry said the offer by Anta was not underpriced and that makes the offer a sensible one on paper.
The Finnish company said that consortium of Anta-FountainVest had said it would acquire the entire share capital of Amer for cash, and added that the deal is subject to certain conditions that included the approval of shareholders holding a minimum of 90% of outstanding shares.
The company’s statement added that it was not engaged at this time in any negotiations with Anta or the consortium and had not made any decisions with respect to the interest shown by the consortium.
The Anta/FountainVest consortium is looking to submit its offer to Amer over the upcoming weeks and then finalize its buyout deal before the end of 2018, said a source who is familiar with the situation.
Net sales for Amer Sports for the first six months of 2018 were €1.106 billion, with sales in local currencies increasing 2%. Gross margin at the end of the six-month period was 45.6%.