The Acquisition Of Amamfin Has No Suspense About Anta's 100 Billion Yuan Revenue Schedule Nearly Half?

In March 8th, the investor consortium, composed of Anta Sports Products Limited (hereinafter referred to as Anta sports), Fangyuan capital, Anamered Investments and Tencent, announced the preliminary results of the voluntary cash offer proposal for the acquisition of all the shares of amamin sports (AmerSports): the shares accepted by the tender offer account for about 94.38% of the shares and voting rights of amaman sports (excluding amamin sports and any shares held by Affiliated Companies).

Although it is not the final result, in the view of the industry, Anta has no suspense in the sports revenue bag of amamwin. "Merger and acquisition brings dividends and challenges to Anta".

March is 12.

According to the investors' consortium, the final outcome of the offer will be announced around March 12th. If the final result of the offer to accept the tender offer exceeds the total shares and voting rights issued by the 90% of amamin sports, the investor consortium will complete the tender offer successfully.

In response, Ding Shizhong, chairman and chief executive officer of Anta group, said: "we are very pleased to see that the tender offer has been widely supported and recognized by the main holders. We will help amamin sports enter the next stage of rapid development.

Next, after the final result is confirmed, we will work closely with the members of other investors' consortia to fully support the excellent management and team of amamin sports to maintain its outstanding brand value and to enter the new stage of growth with the support of investment consortia.

Amamfin sports is the world's top sports equipment brand management group. It has been providing the world's most advanced sports technology products for professional athletes and amateur sports enthusiasts.

Amamfin sports was founded in Finland in 1950 and was listed on the NASDAQ Nordic market NASDAQ OMX in 1977.

Under the banner of amaven, there are many leading brands in the subdivision sports industry, including the Canadian luxury luxury outdoor equipment brand Arc'teryx (original bird), the French outdoor mountain Salomon (Salomon), and the American tennis equipment brand Wilson (Will Xun).

Statistics show that amamin sports has established a wholly owned subsidiary of China - amamin sporting goods trading (Shanghai) Limited, which is solely responsible for all the brands of amamin sports in China.

In December 7, 2018, the consortium of Anta sports, Fang Yuan capital, AnameredInvestments and Tencent jointly announced that through the newly established MascotBidcoOy company, it has voluntarily proposed to make publicly available cash offer for all the issued and out of stock shares of amamin sports.

At that time, the tender offer is expected to be completed by the second quarter of 2019.

At the same time, the investors consortium promised that after the completion of the acquisition, the investor consortium plan would maintain the independent operation of amamin sports and establish a separate board of directors.

The industry generally believes that although the current is not the final result, but from the announcement of the situation, Anta will have no suspense in the amamwin sports income capsule.

Cheng Weixiong, general manager of textile and clothing management and Shanghai Liang Qi Brand Management Co., Ltd., said that Anta's acquisition also reflects changes in the life of Chinese consumers, making consumers increasingly demanding for sports and healthy markets.

45 billion yuan "dish mouth" gradually appear

In fact, this is not Anta's first acquisition. Anta has acquired FILA and the British outdoor leisure and mountaineering brand SPRAND and KINGKOW.

In the industry view, behind this is Anta's 100 billion yuan revenue target: in 2025 to achieve revenues of 100 billion yuan.

Anta brand started in 1991. After more than 20 years of development, it has become a leading brand of local sports brand.

In 2015, Anta's revenue reached 11 billion 120 million yuan, which is the first time that the local sports brand has crossed the 10 billion yuan revenue threshold.

In the same year, Anta set a target of revenue from 10 billion yuan to 100 billion yuan.

At the same time, Ding Shizhong said that based on the market space of sports products and the implementation of group multi brand strategy, Anta had the chance to achieve the target of 100 billion yuan revenue in 2025.

According to the plan, by 2020, Anta will achieve a compound annual growth rate of over 15% of the group's sales and water sales, and the compound annual growth rate of Anta sales will reach double digits. The annual growth rate of FILA sales will exceed 30%.

In terms of sales volume, footwear sales target is 100 million pairs, and clothing sales target exceeds 130 million.

In terms of channels, the number of shops will exceed 11 thousand, and electricity providers account for 20% of retail sales.

Now, it has been 3 years since the initial target was set. Anta's revenue also increased from 11 billion 100 million yuan in 2015 to 24 billion 100 million yuan in 2018.

In the industry view, Anta's 100 billion yuan revenue target is still challenging based on the current multi brand matrix.

According to media reports, amamfin sports revenue in the 2017 fiscal year was 2 billion 685 million 200 thousand euros, converted to 20 billion 200 million yuan at the current exchange rate.

"If this income is included in Anta's revenue, Anta's revenue has exceeded 45 billion yuan."

Some people in the industry also said, "Anta's goal of achieving 100 billion yuan in revenue is still very promising."

Cheng Weixiong said that although Anta realized 24 billion 100 million yuan of revenue in 2018, the future is still full of uncertainties. First of all, the brand of amamin sports is on the high side and outdoors, which has a certain gap with Anta's popular positioning.

Although the experience of successful operation of FILA has been achieved before, it does not mean that Anta can still successfully operate amamin sports with inertial thinking.

At the same time, many European and American sports brands have also entered the Chinese market, and the layout in the subdivision area has also brought operational pressure to Anta.

Who is the next "shortlisted"?

There are two kinds of analysis for Anta's merger and acquisition. Some analysts say that Anta's challenge is still small in the target of sprint billion revenue. For example, the promotion of the main brand image and the operation and management of multi brands.

At present, the only shortcut for Anta to achieve 100 billion yuan revenue target is still M & A.

Although the next Anta acquisition target is still unpredictable, the general direction is certain. In the future, Anta will further accelerate its M & A.

In the continuous acquisition of brands and the implementation of multi brand strategy, it is not surprising that the sale of sports brands is often associated with Anta.

Earlier, when the news of the French luxury giant and Gucci's parent company Kai Yun group plans to split its German sports brand PUMA, Anta was said to be the new owner of the German sports brand.

Subsequently, Anta denied the rumor to the media: "rumors are circulating on the Internet, and relevant news trends will be disclosed for the first time."

But Anta also stated at the same time that it would not exclude high-quality international brands at the right time.

In addition, there have been rumors that Anta will take over one of the world's top four running shoes, San Kang, but the final player is XTEP.

Another analysis is that Anta will not be able to make acquisitions in a short time in the future.

"Anta's acquisition of amamfin, though not about snakes and elephants, has also poured all its financial resources."

Cheng Weixiong said that if Anta aims to achieve 100 billion yuan in 2025, it will not be enough to acquire amamwin sports. Anta needs to grow slowly, but mergers and acquisitions is a shortcut to expand the group.

After purchasing amamin sports, Anta wants to open this "big cake" for another 5-10 years.

In fact, not only is Anta, M & A has become the trend of local sports brand development, but M & A is also a double-edged sword.

Guo Bin, Secretary General of the national sports industry research base of Peking University, said that for local sports brands, the opportunities and risks of mergers and acquisitions coexist.

Taking Anta as an example, the powerful brand system of amamin sports will help Anta's internationalization and become a catalyst for development. But this is also a "big gamble". If the later development and operation are not ideal, Anta will be trapped in a whirlpool.

In addition, Cheng Weixiong also put forward some suggestions for Anta's future development: "the coming winter Olympic Games indicates a new round of development of outdoor sports market. In the future, Anta wants to run amamin sports well, and needs further integration from brands, channels and products."

It is worth noting that Anta has embarked on the world stage of sports brand competition and has made the world know the brand of China's local sports.

Not long ago, the British brand assessment agency Brand Finance released the 2019 top 50 most valuable clothing brands in the world. In this list, 10 sports outdoor brands were selected.

Among them, the American sportswear giant Nike won the championship, Adidas ranked third in the list, and Anta ranked twenty-first.

It should be noted that in the list of sportswear brands, Anta ranked third, surpassing Puma, Under Armour, Skechers, Converse, Reebok and other giants.