This absolute bombshell dropped into my inbox this morning. Amer Sports (Salomon, Atomic) announced this morning their $4.1 million acquisition of Armada Skis (yes, you read that number right). More on this as the story unfolds.
Update: 14:15 (EST): Joerg at Prime Skiing (Joerga on NS) had a chat with Hans Smith, Armada Co-Founder, to find out a bit about why the decision has been made to sell to Amer.
What was the reason for the acquisition?
"We were looking for a partner who could provide us the financial stability to make Armada sustainable for years to come, and Amer liked what they saw in our brand and product. So there was a mutual interest in coming together. We make really really good skis and outerwear, but no one’s accused us of being the most business savvy guys in the industry. Getting backing from Amer – with their expertise in manufacturing, finance and operations – gives us the business support to do what we do for a long time to come, only better than we have in the past.“
What changes to the company’s structure and product line can we expect from the aquisition?
"Amer acquired Armada because they’re fired up on Armada. Under Amer; the brand, product development, marketing and sales will operate independently. The brand doesn’t change. The gear we make doesn’t change – outside of potential product extensions. And our attitude doesn’t change.
Armada is only enhanced because of this new support from Amer – nothing that people love about the company is changing. We’ll keep developing great products, we’ll keep supporting athletes doing incredible things in skiing around the world and we’ll keep doing it all in a way that makes skiing fun. The only change is now we’re doing it with the solid financial backing of an outdoor-focused company in Amer.“
Full Press Release:
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.