Advance The Acquisition Of The Archaeopteryx Parent Company, The Anta Consortium Plans To Borrow More Than 4.2 Billion Euros
- Dec 08, 2018 -

The overseas acquisition of the Chinese consortium led by ANTA Sports went further.

On December 1, Bloomberg News again informed the insiders that Anta and Fangyuan Capital planned to borrow 4.215 billion euros to acquire the Finnish sporting goods company Amer Sports Corporation. The overall valuation of the deal is about 4.66 billion euros.

If the transaction is completed, this will be the largest foreign acquisition in the Chinese apparel industry. Due to the large scale of the transaction, the acquirer needs to seek more cash in addition to its own funds.

It is reported that the loan acquisition plan includes a €2.2 billion five-year loan from Asian institutions and a loan of 1.7 billion euros and 315 million euros from European institutions.

In mid-November, Bloomberg reported that Tencent, a Chinese technology company, intends to join the consortium as a minority shareholder to jointly acquire the entire share capital of Amadeus Sports. At present, the acquisition continues to advance, but there is still no firm news about whether Tencent is involved in the acquisition.

As early as September 12 this year, ANTA Sports publicly stated for the first time that the company, together with the private equity investment fund Fangyuan Capital, has already proposed a preliminary acquisition intention to Amalfi Sports. The Chinese consortium intends to use cash at a price of 40 euros per share. Acquire all of its shares.

In 1950, Amalfi Sports was founded in Finland, initially focusing on tobacco trade, and later developed into a sports goods production and marketing company. In 1977, Amalfi Sports was listed on the Nasdaq Nordic Market and now has more than 8,000 employees.

This Finnish company has continued to expand in the sports industry over the past few decades. According to public information, Amadea Sports owns tennis racket Wilson, hiking shoes Salomon, baseball trousers Louisville Slugger, outdoor equipment Arc'teryx and ski equipment Atomic. The product line covers a wide range and is well known to outdoor sports enthusiasts.

According to the 2017 financial report, Amade's sports revenue increased by 2.4% year-on-year to 2.685 billion euros, of which the Asian market revenue increased by 8% to 389 million euros, which is the fastest growing market. Well-known outdoor businesses such as Archaeopteryx and Salomon are the most valued resources for Anta's acquisition.

In October, Bloomberg News quoted people familiar with the matter as saying that Chinese investors had already negotiated transaction financing with banks and conducted due diligence on Amalfi Sports to see if they had the conditions for the acquisition. At the same time, the acquisition requires approval from 90% of Affien Sports' shareholders and regulators.

If the progress is smooth, the acquisition will be completed as soon as the end of 2018. As the lead, Anta’s share of investment in the consortium was not disclosed.