Suunto – For Sale (as part of Amer Sports)

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It looks like Suunto is up for sale.

More specifically ANTA Sportswear Products & FountainVest, both of China, have expressed an interest to buy at least part of the parent company AMER SPORTS.

Source: NADAQ Helsinki.

 


An offer of Eur40/share seems to be on the table. That is a notable premium above the current share price. Shares are priced at a discount on an open market, the discount is because of a shareholder’s lack of control. If you want to buy CONTROL then you add the premium back on and other factors too, of course.

The share price rose in September when initial discussions started, which seem to be based on interest initially in Amer’s ENVE and MAVIC brands. I would imagine it unlikely that parts of the business will be sold piecemeal. Those that are left behind in such a scenario would have proportionately higher overheads to cover, which would not be great.

90% of voting shares would need to be cast to agree to the offer – which is a big hurdle to overcome. Then again, getting twice what your shares were valued at in January 2018 is probably a straightforward call.

Whilst this looks like a good deal for shareholders worried about stagnation and even decline in some parts of the cycling industry, it might not be a great thing for a quality brand like Suunto and it might not be great news for many of Amer’s existing Eu-based employees. Let’s hope things turn out well.

Ends

January 2021: Sports Watch Update: All new & current Bike/Run/Tri/Fitness Models with GPS. Rumors + replacement dates for Garmin, Apple, Polar, Suunto, Wahoo, Samsung, Fitbit

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Dave

“90% of shareholders would need to agree” being pedantic, the owners of 90% of shares, not 90% of shareholders. 90% of shareholders own 3.5% of Amer Sports while 86% of shares are owned by 51 organisations, or 0.24% of owners. 75% of shares are owned by 11 owners so I think agreement would not be that hard once money is on the table.

Dave

It looks like all shares are equal here but 55% are nominee therefore don’t have the ability to vote

mike

this looks bad. suunto make great products and help keep garmin honest on the innovation front. competition is good for all. plus suunto still manufactures some of their products in finland.