Mavic and Enve now up for sale (Ed: again, on both counts)
02-13-19, 07:37 AM
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Mavic and Enve now up for sale (Ed: again, on both counts)
A week ago, Amer said sales were up overall....but that it was "considering":
https://www.bicycleretailer.com/indu...cling-business
Which has now become "actively seeking"
https://www.bike-eu.com/home/nieuws/2019/02/amer-sports-now-actively-searching-for-mavic-and-enve-buyer-10135310?vakmedianet-approve-cookies=1&_ga=2.261870541.1351000967.1549988383-637413717.1549988383
Back in Spetember Amer was thinking of dumping its cycling business, blaming it on "lack of synergy" (LOL):
https://www.bicycleretailer.com/inte...g#.XFyF-M9KhTY
Amer Q4 sales up 10%; company continues to explore sale of cycling business
Published February 7, 2019
HELSINKI (BRAIN) — Amer Sports on Thursday reported a 10 percent increase in fourth-quarter sales, to 874.2 million euros ($992 million). Growth was strongest in apparel, up 41 percent following the acquisition of Swedish brand Peak Performance last spring, the company stated.In an earnings release, Amer did not break out figures for its cycling business, which includes the Enve and Mavic brands. However, president and CEO Heikki Takala stated, "In Q4, we continued to prepare strategically for a more focused portfolio as we proceeded the Cycling sale process, and in the core business we continued to invest into future growth to ensure a strong pipeline of initiatives for 2019 and beyond."Takala has previously stated that Amer's cycling business is underperforming, and that he was considering putting both Mavic and Enve up for sale.
Which has now become "actively seeking"
Amer Sports Now Actively Searching for Mavic and Enve Buyer
HELSINKI, Finland – Amer Sports has published its financial 2018 report in which the company announced that it is now actively seeking for a potential buyer of its Cycling asset, consisting of Mavic (wheels, rims, tyres, apparel and foortwear) as well as Enve (wheels, hubs, bars, stems, posts and forks). Amer’s 2018 financial report no longer specifies the financials of the two companies.Deteriorating results Mavic & Enve
Mavic and Enve no longer fit in Amer Sports’ strategy to pursue sustainable, profitable growth. The company is prioritizing acceleration in soft goods, B2C, China, United States, and digitalization. It comes after continuous deteriorating results of Mavic and Enve. For the first half of 2018 Amer Sports reported that sales of its cycling division declined by 13 percent to 60 million euro.
HELSINKI, Finland – Amer Sports has published its financial 2018 report in which the company announced that it is now actively seeking for a potential buyer of its Cycling asset, consisting of Mavic (wheels, rims, tyres, apparel and foortwear) as well as Enve (wheels, hubs, bars, stems, posts and forks). Amer’s 2018 financial report no longer specifies the financials of the two companies.Deteriorating results Mavic & Enve
Mavic and Enve no longer fit in Amer Sports’ strategy to pursue sustainable, profitable growth. The company is prioritizing acceleration in soft goods, B2C, China, United States, and digitalization. It comes after continuous deteriorating results of Mavic and Enve. For the first half of 2018 Amer Sports reported that sales of its cycling division declined by 13 percent to 60 million euro.
Back in Spetember Amer was thinking of dumping its cycling business, blaming it on "lack of synergy" (LOL):
HELSINKI (BRAIN) — Amer Sports CEO Heikki Takala made clear Thursday that the company is considering selling off both its cycling brands, Mavic and Enve. In the most gentle but firm way, Takala said there might be a better owner out there, somewhere, for the brands, both of which he called "iconic.""We are not able to give them enough scale and synergy potential," he told invited guests at a Capital Markets Day presentation Thursday morning. "Rather than going and keeping going and keeping going and trying — we've been trying for quite some time and we've done good things but it's clearly taking a lot of time and effort and it's not responding in line with expectations.
Last edited by Marcus_Ti; 02-13-19 at 07:40 AM.
02-13-19, 07:41 AM
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And?
02-13-19, 11:26 AM
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I can't afford to buy a single set of Enve wheels, much less the whole company. They'll have to look elsewhere.
02-13-19, 11:33 AM
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At $3400 a set, it's hard to imagine Enve going broke.
What comes to mind is they just now realized the rate of return is asymptotic & are looking to off-load before they have to answer for stagnation.
What comes to mind is they just now realized the rate of return is asymptotic & are looking to off-load before they have to answer for stagnation.
02-13-19, 03:47 PM
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My last Easton Carbon Fiber wheel I bought was about $5 (needs a little tuning).
I'm not surprised with Mavic's woes. Or perhaps I'm just seeing the wrong side of the company. 20 or 30 years ago they made really nice "generic" wheel components. They've now moved to the most incompatible wheels on the market. $10 to $20 for a replacement spoke????
Perhaps that is a problem with the modern racing mentality. Save that last watt???? How many dollars per watt?
My guess is that within 10 years or so, we'll be seeing some really nice Chinese branded wheels on the market... I think quite a few are already out there, and one just isn't noticing them.
But, we'll be seeing $300 Chinese wheelsets of similar quality to those $3400 Enve wheels. And they will be really hitting the mainstream of everything but the Pro Tours.
How long until Zipp is knocked off their pedestal? I'm seeing Chinese disc wheels without the ragged valve cutouts that the big brands have (or used to have). I'm looking at a USA made competitor that is supposed to be 300 grams lighter than Zipp's lightest disc wheel.
