Amer Sports Corporation has acquired all the shares and related businesses of Peak Performance AB from the Danish fashion company IC Group. Based in Stockholm, Sweden, Peak Performance is a leading premium sports fashion brand with net sales of DKK 1,079 million (approx. EUR 145 million) and EBIT of DKK 123 million (approx. EUR 16.5 million) in the last 12 months. As a result of the transaction, the approximately 300 Peak Performance employees will become part of the Amer Sports Group.
The acquisition price is DKK 1,900 million (approx. EUR 255 million), and the transaction will be financed by Amer Sports' cash reserve and committed bank financing. The closing of the acquisition is expected during the summer 2018, subject to customary regulatory approvals. The acquisition is expected to deliver over EUR 10 million in annual synergies to be realized in full over the next few years. The acquisition will have a minor positive impact on Amer Sports' 2018 financial results, subject to final timing of the closing.
Peak Performance has a strong presence in the North and Central European markets, and the brand is also highly recognized outside of Europe. Peak Performance has evolved from its skiwear heritage to a balanced sportswear brand with year-around offering, capitalizing on the performance inspired fashion culture with strong global market growth. More than 40% of the brand's sales is womenswear and approximately 45% is direct to consumer.
"In line with our strategy, we accelerate in Softgoods and Direct to Consumer by acquiring Peak Performance, the iconic Swedish premium performance outerwear and streetwear brand. Peak Performance is distinctively positioned versus our current brand portfolio and it has a strong relevancy in sports fashion, and moreover a significant share of sales in womenswear and direct to consumer. With this acquisition, we take another important step toward our longer term target of bypassing EUR 1.5 billion sales in Softgoods", comments Heikki Takala, President and CEO of Amer Sports.
Amer Sports has been advised by SEB Corporate Finance, as financial advisor, and Accura, as legal advisor, in the transaction.