Caijing reporter Ma Lin / Wen Yu Le / editor
Anta (02020.HK) is a step away from the real internationalization path.
Anta Group has recently announced the acquisition of all issued and unpaid shares of Finnish Sporting Goods Group Amer Sports through the newly established Mascot Bidco Oy. The acquisition cost of € 4.66 billion is expected to be the largest acquisition of Chinese sporting sports and will be the largest foreign acquisition in China in 2018.
Anta Ding Shizhong, Chairman of the Anta Group, said in his internal letter, "This is the most difficult decision I've made since the beginning, and if the final transaction process is completed, the consortium will acquire all of Amade's shares."
In the previous interview, Caijing Li Ling, vice president of Anta Group, said that "(Anta) has gained ownership of the sale in Great China (international brand) and the real global merger has not started 100%." And if the acquisition of Amer is completed, it will be the first truly global acquisition of Anta.
At present, Anta in China is involved in over 95% of Anta's business, but Anta is expected to surpass 20% -30% of international trade in 2025. The whole business should cover major markets like Europe and the United States. "It is very difficult to go to the United States with the main brand of Anty and to open the market in Europe." This acquisition will bring the group's business activities to Europe and the United States and the process of internationalization will be quicker, "said Li Ling.
In recent years, Anta has won an Anta, as well as Italian Fila, Japanese Desente, Sprandi, Kolon and Hong Kong Little Smile (Kingkow), and other international brands in China's marketing rights that compensate for the lack of variety brands of Anta, Anta has never achieved a truly global brand acquisition.
Anta has introduced a "multi brand" strategy since 2015. The company believes that today's consumers have entered a era of diversified consumption. It is difficult for one brand to meet the needs of all consumers and create a multi-brand matrix to cover fashion, professionalism and low level. End-to-high to high-end customers of all kinds of needs.
Independent sports analyst Ma Gang believes that the acquisition of Amer Sports for Anta continues the strategy of Anta, which focuses on the sporting goods industry and expands the brand category. At present, Anta is lacking professional outdoor shoes and equipment for equipment outside the area of mass sports shoes and clothing.
Amer Sports has earned more in outdoor products. Its products include well-known Canadian high-end outdoor equipment, Arc Terryx, Salomon (Salmon), and US Wilson (Wilson) tennis equipment brand. Austrian ski brand Atomic Skis, Austrian brand Atomic for ski equipment, Finnish sports watches and other brands of outdoor Suunto technology and American trench marks by Precor.
Ma Gang also believes that the acquisition of Amer Sports can help Anta open up international sales channels and supply chain channels. He said that Anta's international brand with better activity in China is Fila, but Anta owns only the Operations of Great China in File and has no opportunity to run global trade through Fila. At the same time, the main brand of Anty is also possible to approach globalization. There are currently foreign shows in Russia and Singapore, but they are not enough to create a benchmark.
Brand for Textile and Apparel Manufacturing and Managing Director of Shanghai Liangqi Brand Management Co., Ltd. Cheng Weixiong told Caijing that Chinese sports brands still face problems with homogenization in products and channels. With the acquisition of international brands, Anta will be more out of the crowd. It will be more individual and more diverse.
Financial non-consolidation after acquisition
The Anta-based investor consortium also includes Fangyuan Capital, Anamered Investments and Tencent. Among the newly established companies, Anta represented 57.95%, Fangyuan Capital accounted for 15.77%, Anamered Investments had 20.65%, and Tencent had 5.6%.
Anta said she expects the transaction to be completed by the second quarter of next year. Amer Sports will continue to manage its existing executives and headquarters in Helsinki.
Upon completion of the acquisition, Anta does not include Amer Sports's performance and balance sheet data in its financial statements. Analysts believe that this decision may be due to the fact that the profit rate of the acquisition target is lower than that of Anta and the debt is higher, which may drag the Anta cash flow, profit margin and dividend payout next year. Since the acquisition report in September, the price of Anty has been down under pressure at a price of 36.3 yuan per share on Friday, which is still below 42 yuan per share at the end of August.
Currently, the Board of Directors of Amafen Sports has decided to unanimously recommend that shareholders accept the offer. Acquisitions are still ongoing and negotiations have not been completed.
After an inventory crisis around 2010, Anta switched from wholesale and retail to a retail terminal, changed channel ideas, turned agents into company shareholders, operated agents in the form of branches, and transformed product ideas, and hired international design teams. The status of Chinese sports brands is becoming more and more consolidated.
Li Ling said that as far as Anta's own brand is concerned, the current Anta brand is still a professional sporting brand that serves the most popular customer groups and the most basic sports enthusiasts. The price is between 299 yuan and 899 yuan. The goal is not to try to achieve higher profits, the benefits of group purchases, cost control and terminal prices, and improved management efficiency.
She said Anta raised her investment in mass consumption and fashion movements, especially women's and children's products, and paid more attention to product design. In the previous interview, he showed the importance of Yan value to the financial reporter and stated that "women (products) were highly rated in the past year or two, and the market also verified the high rate of return that a woman spends." Very high, while Anta Children has grown very fast in the group, with a 40% increase in the previous year, which should make the group a very important brand other than Fila. "
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(Editor: Song Yuhui)