It seemed clear that ENVE was ripe for the picking. The company grew quickly and, despite a few hiccups, has been making high quality, top performing products. ENVE’s new owner, AMER SPORTS, founded in 1950, is a Finnish conglomerate that has gradually evolved from industrial interests into a firm focussed on sporting goods. Their other brands include Salomon, Arc’teryx and Mavic (see below for more of their brands). As of this writing their stock is trading at €25.33 giving them a market cap of €3.002B. Can another massive corporation snapping up a boutique brand be good for the cycling consumer? Not long ago cycling brands owned by publicly traded behemoths were uncommon, but it seems the trend is accelerating. An exception is Pon Holdings, new owner of Santa Cruz, which is a massive, but privately held company.

Press Release:

To accelerate its Cycling business, Amer Sports Corporation has acquired ENVE Composites LLC, based in Utah, USA. ENVE is a fast-growing brand in high-end carbon wheels, components, and accessories for road and mountain biking with annual sales of approximately USD 30 million. The acquisition accelerates Amer Sports Cycling business especially in the United States and provides further expansion opportunities internationally. ENVE brings capabilities in carbon technology, and it offers operational scale and synergy benefits complementing Amer Sports’ cycling category.

The acquisition price is USD 50 million in an all-cash transaction. The acquisition will have no material impact on Amer Sports’ 2016 financial results, and it will be accretive to Amer Sports EBIT margin as of 2017. The closing of the acquisition is expected in the first quarter of 2016.

AMER SPORTS

Amer Sports (www.amersports.com) is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto and Precor. The company’s technically advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group’s business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports shares are listed on the Nasdaq Helsinki stock exchange (AMEAS).

Will this make ENVE wheels more or less affordable?