Amer Sports purchases Armada Skis

[Philpug]

Amer Sports Corporation

Amer Sports acquires Armada, a US ski brand

Amer Sports Corporation acquires Armada, the iconic US ski brand, with annual net sales of approximately USD 10 million. The acquisition includes the Armada brand, Armada-branded products, as well as intellectual property and distribution rights. The transaction value is approximately USD 4.1 million, of which USD 2.5 million will be settled with cash. Armada will be integrated into Amer Sports Winter Sports Equipment business unit.

“The acquisition enables us to further accelerate especially in the US market where Armada has a solid presence. Further, the acquisition is synergistic, as we have already in the past collaborated with Armada through a joint manufacturing arrangement. We’re pleased to welcome Armada into our portfolio of strong, well-positioned brands”, says Michael Schineis, President of Amer Sports Winter Sports Equipment.

The acquisition has no material impact on Amer Sports 2017 financial results.

LINK: REUTERS

 

[Jilly]

Taking over....Atomic, Salomon, Volant, Armada....plus all the other non ski brands.

 

[Philpug]

What I like is Armada complements thier other ski brands. What will be interesting is that Atomic is already building a good percentage of Armada's skis (Blizzard's factory produced many too). Armada's head quarters and skunkworks are located in Park City, very well that will be moving down valley to Amer's headquarters in Ogden. Tanner Hall, Armada's skiing face has been sponsored by and working with Tyrolia for as long as I can remember and I assume we will see him on a Sth2 with this changeover.

 

[markojp]

Makes sense... Wonder about FT. Seems it would be a good addition as well.

 

[Erik Timmerman]

I always thought that they already did own Armada

 

[fatbob]

So is that a good or bad multiple for winter sports? Doesn't strike me as too bad but its way off most consumer brands.

 

[ScotsSkier]

I'm not too familiar with multiples in this sector but 40% of revenues seems a fairly low exit price. OTOH, if the manufacture is all sub-contracted there is probably a pretty limited asset base and value so the price starts to make sense if only buying the brand name and some IP

 

[fatbob]

I'm not too familiar with multiples in this sector but 40% of revenues seems a fairly low exit price. OTOH, if the manufacture is all sub-contracted there is probably a pretty limited asset base and value so the price starts to make sense if only buying the brand name and some IP

Yeah kinda my thinking - better than the zero exit price on many hard goods brands.

 

[Ecimmortal]

Makes sense... Wonder about FT. Seems it would be a good addition as well.

Full Tilt is under the K2 umbrella owned by Jarden. Jarden has already stated they would not peace meal the brands owned by K2

 

[markojp]

Full Tilt is under the K2 umbrella owned by Jarden. Jarden has already stated they would not peace meal the brands owned by K2

Yes, I'm aware of that. I also don't believe for a second that they won't sell it piecemeal when push comes to shove if the price is right... or just one side of right enough.

 

[Tricia]

Makes sense... Wonder about FT. Seems it would be a good addition as well.

Full Tilt is under the K2 umbrella owned by Jarden. Jarden has already stated they would not peace meal the brands owned by K2

Actually FT is connected more closely with Line, under the K2 umbrella. Owned by Newell.
I don't see Newell piecing FT away from Line.
I know many of the Armada reps are working with Roxa Boots.

As for me, I have been on some really really good Armada skis in the past few years. Victa 87 Ti, and Trace 98 blew me away!

 

[markojp]

I was wondering/thinking Line might be the most vulnerable name in the Newell bunch. If there was a brand that disappeared, seems this would be it, but I know they're still actively testing skis, etc.., so I guess it's full steam ahead until it isn't.

 

[Philpug]

I was wondering/thinking Line might be the most vulnerable name in the Newell bunch. If there was a brand that disappeared, seems this would be it, but I know they're still actively testing skis, etc.., so I guess it's full steam ahead until it isn't.

It is, again rumor of their death was greatly exaggerated. I know this is deja vu all over again for Jason Levinthal from when he sold Line to K2.

 

[cantunamunch]

Wonder if Armada will pick up more of a FR tone.

 

[fatbob]

Wonder if Armada will pick up more of a FR tone.

Thought it already had , hence the skis for adults that Phil and Trish like. I don't know how they'd position it but it would make sense to me if it was Amer's pricepoint brand for the cool kids (notwithstanding that the likes of Faction and Black Crows have moved in on their terrain).

 

[Frankly]

Seems like a pretty low price, who made money besides the lawyers?

 

[Lorenzzo]

I'm not too familiar with multiples in this sector but 40% of revenues seems a fairly low exit price. OTOH, if the manufacture is all sub-contracted there is probably a pretty limited asset base and value so the price starts to make sense if only buying the brand name and some IP

At that price it's probable they were losing money but in any event weren't clearing net of everything more than 500k. We're looking at brand, design and inventory value as opposed to NOI. We also don't know the conditions to getting paid in full.

 

[Ecimmortal]

Actually FT is connected more closely with Line, under the K2 umbrella. Owned by Newell.
I don't see Newell piecing FT away from Line.
I know many of the Armada reps are working with Roxa Boots.

As for me, I have been on some really really good Armada skis in the past few years. Victa 87 Ti, and Trace 98 blew me away!

Line is just K2 to me as well sooo. Yah.

Wonder if Armada will pick up more of a FR tone.

They certainly already were. Before JP's death he was more in to backcountry, and big mountain touring. Todd Ligare has been on their team for a few years as well. A lot of their demogrpahic was "growing up" and looking for more options within their lineup.

Thought it already had , hence the skis for adults that Phil and Trish like. I don't know how they'd position it but it would make sense to me if it was Amer's pricepoint brand for the cool kids (notwithstanding that the likes of Faction and Black Crows have moved in on their terrain).

Not sure you would take a brand that is pretty prestegious in it's demographic, and make it pricepoint. Armada makes different skis. But certainly not price point. And I'm sure there is no shortage of pricepoint skis under the Amer umbrella.

At that price it's probable they were losing money but in any event weren't clearing net of everything more than 500k. We're looking at brand, design and inventory value as opposed to NOI. We also don't know the conditions to getting paid in full.

According to former employees. The CEO was pretty much pissing away money. The move to SLC and the grandios manner in which it was accomplished may have been unnecesary.

 

[Philpug]

Line is just K2 to me as well sooo. Yah..

You also think a Renoun is the same as a J skis as well, so yeah... I 's just not the case. Just cecause two skis come out of the same factory does not make them the same...except maybe what comes out of Neversummer.

Not sure you would take a brand that is pretty prestegious in it's demographic, and make it pricepoint. Armada makes different skis. But certainly not price point. And I'm sure there is no shortage of pricepoint skis under the Amer umbrella..

I know the Invuctus series is a helluva deal compared to the other skis in it's segment, just based on how the skis are finished.

According to former employees. The CEO was pretty much pissing away money. The move to SLC and the grandios manner in which it was accomplished may have been unnecesary.

I woudl not call their new digs grandiose, it is in a empty car dealership. But anytime there is a move there is a LOT of expenses but moving to ski country was an important move...since they are a ski company. The main thing is, the name stays.

 

[markojp]

Heard some rumblings of a pretty cool off piste ski in the works. Can't say more, but should be eye catching.