Amer Sports, the renowned sports equipment manufacturer behind iconic brands such as Wilson tennis rackets and Salomon ski boots, has made a confidential filing for an initial public offering (IPO) in the US, potentially valuing the company at an impressive $10 billion. This confidential IPO filing was disclosed by individuals familiar with the matter, who spoke on the condition of anonymity due to the sensitive nature of the information.
Sources indicate that Amer Sports is aiming for an IPO in US with a minimum valuation of $1 billion, but the final offering size could range between $1 billion and $3 billion, contingent upon prevailing market conditions. This strategic move toward going public aligns with Amer Sports’ ambition to enhance its market presence and boost its capital base. While this IPO is still in the deliberation stage, it’s important to note that specific details may evolve as discussions progress.
Amer Sports, headquartered in Finland, boasts a diverse portfolio of well-known brands, including Louisville Slugger baseball bats, Arc’teryx outdoor gear, and Atomic winter equipment, in addition to their flagship Wilson and Salomon products. This diverse product lineup has solidified Amer Sports’ reputation as a major player in the global sporting goods industry.
In 2019, Amer Sports was acquired by Chinese athletic-apparel giant Anta Sports Products Ltd., along with co-investors Tencent and Chip Wilson, founder of Lululemon Athletica Inc., in a deal valued at approximately $5.2 billion. Subsequently, in 2020, Anta divested Amer Sports’ fitness-equipment subsidiary, Precor, to Peloton Interactive Inc. for $420 million.
Anta Sports’ annual report reveals a remarkable 22% increase in Amer Sports’ revenue for the previous year, totaling 24 billion yuan ($3.3 billion). This robust performance underscores the potential attractiveness of an Amer Sports IPO to investors.
Amer Sports’ decision to pursue an IPO aligns with a growing trend among companies, even during the challenges posed by a global pandemic. The objective remains consistent: to instill long-term investor confidence and augment profits. The surge in U.S. IPOs has drawn parallels to the historic year of 1999, reflecting the enduring appeal of going public.
A successful Amer Sports US IPO could serve as a significant milestone for Anta Sports, Tencent, and Chip Wilson, as they strive to introduce their products to China’s burgeoning middle class. Simultaneously, American investors stand to gain an opportunity to hold stakes in this esteemed brand through the IPO.
Amer Sports occupies a pivotal position in the world of sporting goods and equipment, and its IPO plans have been eagerly anticipated. The anticipation surrounding this development centers on the prospect of Amer Sports expanding its reach beyond domestic markets, tapping into a global audience.
While numerous questions surround the forthcoming filing and IPO, it’s crucial to acknowledge the profound impact this decision could have, not only on the future of Amer Sports but also on other brands and startups. This IPO filing by Amer Sports underscores the prevailing trend of companies capitalizing on the benefits and opportunities offered by public offerings.
Ultimately, the most significant takeaway from this announcement is the convergence of two major economic spheres, Europe and Asia, signifying the transformation of our global market and economy. Amer Sports’ journey toward going public is a testament to the enduring allure of the IPO process and its potential to reshape the landscape of the sporting goods industry on a global scale.
Source: Bloomberg
