In May of 2005
Amer Sports of Finland aggreed to purchase Salomon Sports
from the adidas shoe and athletic clothing company.
PRESS RELEASE FROM AMER SPORTS
MAY 2, 2005
AMER SPORTS ACQUIRES SALOMON
Amer Sports Corporation has made an agreement with
adidas-Salomon AG to acquire Salomon, including the
brands Salomon, Mavic, Bonfire, Arc'Teryx, and Cliche.
The combined business will create a leading global
sports equipment company with combined sales of
EUR 1.7 billion and 6,800 employees. The acquisition
is subject to customary conditions including regulatory
approvals.
The enterprise value of the transaction amounts to
approximately EUR 485 million based on year-end 2004
net assets, and includes EUR 144 million in goodwill.
Amer Sports is financing the transaction with debt,
which is expected to bring its gearing ratio to
approximately 110% at the Company's financial year end,
31 December 2005. Amer Sports expects that the
acquisition will have a slightly positive impact on
earnings per share in the current fiscal year as well
as in 2006. It is expected that the transaction will
be completed by the end of September 2005.
Headquartered in Annecy, France, Salomon achieved
total sales of EUR 653 million and an operating profit
of EUR 9 million in 2004 which included a restructuring
provision of EUR 19 million. Salomon is a significant
player in freedom action sports equipment and is
well-established in technical apparel and footwear.
In addition, the brands Mavic, Bonfire, Arc'Teryx,
and Cliché all represent a true specialist approach
in each of their business areas. Salomon is known for
highly innovative and performance oriented products.
Salomon: winter sports incl. alpine and cross-country
skis, snowboards, boots and bindings, inline skates,
footwear, and apparel
Mavic: bicycle components
Bonfire: snowboard apparel
Arc'Teryx: technical outwear, harnesses, layering systems
and backpacks
Cliché: skateboard equipment and apparel
"Salomon fits perfectly with our own portfolio. The leading
freedom action sport brands 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 complement each other well
in geographical terms, making our geographical coverage
more balanced,” says Mr Roger Talermo, CEO and President,
Amer Sports. "As a result of this transaction, we will
become the leading sports equipment company.”
"Salomon has been a great member of our Group. However,
we decided that now is the time to focus even more on our
core strengths in the athletic footwear and apparel market
as well as our growing golf category. We are convinced that
Amer Sports is the ideal partner to take Salomon to the
next level," says Mr Herbert Hainer, Chairman of the
Executive Board and CEO of adidas-Salomon AG.
“We have enjoyed being part of the adidas-Salomon Group
for the last eights years, during which time Salomon
developed significant positions for freedom action sports,
both in the winter and summer sports market. We are well
positioned for further growth in all areas of our business.
We are excited about joining Amer Sports given its
competencies in winter sports. This new partnership
will help us to leverage the full potential of our
family of brands," says Mr Jean-Luc Diard, President
of Salomon.
ORGANIZATION
Jean-Luc Diard, the President of Salomon since 1998,
will continue to lead the Salomon organization,
reporting directly to Roger Talermo, CEO and
President of Amer Sports. The management of Mavic,
Bonfire, Arc'Teryx, and Cliché will also remain
unchanged, reporting to Jean-Luc Diard. Amer Sports
and Salomon will continue to serve their customers
around the world as before with their own separate
sales forces. The restructuring program in France,
initiated by Salomon, and approved by the works
council, will continue.
To assure Salomon’s smooth separation from the
adidas-Salomon organization, it has been agreed
that the parties will cooperate during a transition
period of up to three years.
From the already initiated restructuring and from
synergies, Amer Sports expects to realize gradually
annualized cost savings reaching to EUR 40 million
by the end of 2008. These synergies will mainly be
achieved from industrial operations in the winter
sports business. In addition, synergies are expected
in administration and R&D.
AMER SPORTS CORPORATION
Board of Directors
Press Release Issued by Adidas
Forum Discussion About Salomon Being Sold
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