Amer Sports, the maker of Wilson tennis racquets, was an early entrant in the IPO market this year. The Company priced their IPO offering at $13 raising $1.37 billion, reflecting an approximate $6.4 billion valuation. Final pricing was well below the $15-18 a share that had been initially introduced to the market.
The completed offering may not bode well for future IPOs, at least in the near term. That said, reports suggest that investor company specific concerns emerged regarding Amer Sports position within the context of China’s economy. The Company is owned by a group of Chinese companies, although the vast majority of its sales are in the US and Europe
The Company filed an F-1 registration statement with the SEC on January 4th. Many expected the IPO filing to be the first of many to follow in its footsteps, with equities having rallied and renewed investor optimism about the economy. Early indications may challenge that premise as the Company priced its transaction well through the initial price talk. For a view of 2024 IPO dynamics, see Time for IPO Talk
Amer is a global company whose brands include Arc’teryx, Salomon, Atomic, Peak Performance and Wilson. The Company describes its purpose in the F1 filing as “Elevating the world through sport – from courts to slopes, from cities to mountains, and everywhere in between.” The stock ticker symbol is now “AS” on the New York Stock Exchange
The Company also characterizes itself as “…a global group of iconic sports and outdoor brands..” in the prospectus supplement.
The Company’s portfolio is comprised of truly iconic brands. It is therefore worthwhile sharing the first 1-2 sentences of the of the descriptions of three flagship brand names:
–Arc’teryx: “Arc’teryx is a technical outdoor apparel brand inspired by the Canadian Coast Mountains and built on the principle of obsessive, precise design and production. Arc’teryx gear pushes the boundaries of performance and enables adventurers to excel…”
-Salomon: “Born in the French Alps in 1947, Salomon creates premium innovative footwear, apparel, winter sports equipment and accessories. Since its founding, Salomon has been fueled by a culture of design, craftmanship, continuous innovation, and performance inspired by progress, the outdoors and athletes.”
-Wilson Sporting Goods: “Founded in 1914 in Chicago, Illinois, Wilson Sporting Goods is a leading manufacturer of high-performance sports equipment, apparel, footwear and accessories. The Wilson Sporting Goods portfolio is made up of the iconic Wilson brand, as well as Louisville Slugger, DeMarini, EvoShield and ATEC. Collectively, these brands bring more than three centuries of innovation, history and heritage…”
History: Amer Sports Corporation, a subsidiary of Amer Sports, was founded in Helsinki, Finland in 1950. Amer Sports Corporation was acquired by an investor group in 2019. Current owners include ANTA Sports Products, FountainVest Partners, Anamered Investments Inc and Tencent Holdings Limited.
Financials: The Company reports in the F-1 filing that preliminary results for December 31, 2022, include approximately $3.55 billion of revenues and adjusted EBITDA of $453 million. (For a summary of adjustments made to EBITDA see pages 17 and 18 of the F-1 filing).
The Company reports a $114 million net loss on $3.05 billion of revenue in the first nine months of 2023. Year-end 2023 financials will be available upon the completion of the 2023 audit by the Company’s independent auditors. Nine month 2023 financials are available on pages 25-28 of the F1 filing. Amer Sports, Inc SEC F-1 Filing
Management: Jie (James) Zheng will be CEO and Director Nominee. Jie Zheng has been CEO since 2020 and has served in various management capacities for Addias and Reebok. Mr Zheng joined ANTA Sports in 2008 and was Group President and Executive Director prior to his role as CEO. Andrew Page will be the CFO. Mr Page was CFO of Foot Locker from 2021 to 2023 and prior to that was chief accounting officer of Advance Auto Parts. He has also held several roles at Under Armour, the athletic apparel and footwear company, from 2011-2019. Additional management positions are summarized in pages 160-163 of the F-1 filing.
The Company’s most recent statement on January 22nd announced the launch of the offering: Amer Sports Recent Announcement and the Company priced the IPO on February 1st
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