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Adidas Sold Salomon to Amer Sports
In March of 2005 Adidas denied that Salomon was up for
sale, but on May 2, 2005 they announced that Salomon has
been sold to the Amer Sports Corporation.
PRESS RELEASE FROM ADIDAS
MAY 2, 2005
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 euros 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.
Why adidas is Selling Salomon
"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."
From Amer President Roger Talermo
"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.
From Salomon President Jean-Luc Diard
"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 Restructuring Plan Will Go forward
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.
About adidas-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 euros and posted a record net income
of 314 million euros, 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 euros, achieved an operating profit of 9 million euros
(after a restructuring charge of 19 million euros) 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).
About Amer Sports
Amer Sports, 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 euros million on net sales of
1,035.9 million euros. Earnings per share from continuing
operations
were 0.96 euros. At the end of 2004 the Company had 4,066
employees.
Amer Sports Press Release About Buying Salomon
Forum Discussion About Salomon Being Sold
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