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Altor to buy Rossignol

post #1 of 10
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ALTOR TO BUY ROSSIGNOL

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PUBLISH DATE

07/15/2013

SAM Magazine—Stockholm, Sweden, July 15, 2013—Private equity group Altor is acquiring a majority stake in Rossignol Group from the current owners, Australian bank Macquarie (77 percent) and U.S. sporting goods conglomerate Jarden (17 percent), which also owns K2, Marker, Volkl, and several other brands. The deal values Rossignol at $196 million and is expected to close by this fall.

According to reports, Altor plans to expand the Rossignol brand in outerwear, building on its experience in raising the fortunes of Norwegian softwear brand Helly Hansen since buying it in 2006. "We think the Rossignol brand has huge potential in apparel and we would like to develop ranges that people can wear both in ski resorts and cities," Rossignol group chief executive Bruno Cercley told Reuters.

Once the transaction is complete, Altor will own 80 percent of Rossignol. Private investors, including Cercley and the Boix-Vives family that owned Rossignol from 1955 until they sold to Quiksilver in 2005, will own the rest.

Rossi has been on a bit of a rollercoaster since the Quiksilver purchase, which was priced at 360 million euros (approximately $470 million). In 2009, Quiksilver sold Rossignol for about $52.5 million.

Rossignol had sales of approximately $270 million last year and has been profitable for the past three years, Altor said. However, demand for ski equipment worldwide has been on a long decline since peaking in the early 1990s. Sales this year hit 3.2 million, down from 3.5 million in 2009 and 7 million 20 years ago, according to Reuters. The overall decline stems from a steep drop in the Japanese market, once the world’s largest, and the grown in rentals in many other countries.

Aside from expanding into outdoor apparel, Cercley said the company would seek acquisitions in the outdoor market to further reduce the company’s reliance on winter sports.
 

Interesting. I wonder how this effects Dynastar & Lange. 

post #2 of 10

The company has had more owners than the used belt sander I just picked up at the flea market.  Anyhow, Rossi still makes great skis but it sounds like it needs diversification into non-winter sports.  Like sometimes sucks when the pot you are planted inside is shrinking and not growing.

 

However, demand for ski equipment worldwide has been on a long decline since peaking in the early 1990s. Sales this year hit 3.2 million, down from 3.5 million in 2009 and 7 million 20 years ago, according to Reuters. The overall decline stems from a steep drop in the Japanese market, once the world’s largest, and the grown in rentals in many other countries.

 

Note:  Those numbers cannot be correct (a few zeros missing), but the trend is down.

post #3 of 10

Looks like the acquisition includes Dynastar, Look, Lange and Kerma.   Seems like a good deal for all involved.  Quicksilver is the big loser. 

 

Kudos to the employees at Rossi for continuing to make great skis and turning profitable through all the recent corporate upheaval.  I'm really excited to try the new 7 series.

 

Here's the press release from http://www.altor.com/

 

Altor to acquire Rossignol Group

Posted 

 

13-07-15

Altor Fund III (“Altor”) has entered into an exclusive process with the intention to acquire a majority stake in Rossignol Group (“Rossignol”), the world’s second largest ski equipment player.

 

Rossignol is the owner of six leading winter sport brands; Rossignol and Dynastar skis, Look bindings, Lange boots, Kerma poles and Risport figure skates. Rossignol in 2012 had close to EUR 210 million in turnover and employs roughly 1,200 people with headquarters in Moirans in France.

 

Altor’s rationale behind the acquisition is to use some of the experience from the successful turnaround of Helly Hansen, which was acquired in 2006 and has since improved profitability from loss making to industry leading margins. While Rossignol already is making a healthy profit, Altor believes that there are opportunities for continued improvement and more focus on growth in existing and new categories.

 

“Rossignol is an iconic brand with roots back to when Abel Rossignol produced its first pair of skis in 1907.  The group’s other brands, Dynastar, Lange and Look are also truly distinctive in their respective categories.  We are truly enthusiastic about working with the company and its management team to accelerate growth in all these categories.” said Hugo Maurstad, Partner at Altor Equity Partners.

 

Mr Maurstad is moving to central Europe in conjunction with the acquisition to be able to work more closely with Rossignol but also with other bolt-on acquisitions in Europe that increasingly gets important for the Altor strategy.

 

“We are proud of what Rossignol has achieved to date, and share the view that we have many attractive growth opportunities ahead of us.  We look forward to working with our new majority owner, who shares our strategic perspectives, enthusiasm and understand the winter sports business. I believe that together we will be a powerful team”, said Rossignol’s CEO, Bruno Cercley

 

Altor is proposing to acquire Rossignol group together with management, Weber Investment, and the Boix-Vives family, who used to own Rossignol Group from 1955 to 2005.  These minority shareholders will own around 20% of the company, while Altor will own the remaining 80%.

 

Subject to certain closing conditions including the final approval of the applicable government authorities, the transaction will be fully effective before or during the fall of 2013.

 

For further information, please contact:

Hugo Maurstad, Altor Equity Partners, +47 90 10 43 08
Mathieu Collet, Euros / Agency (on behalf of Rossignol), +33 6 11 08 19 93

 

About Altor

Altor Equity Partners act as investment advisor to the Altor funds. Since inception, the Altor funds have invested in close to 40 companies with a committed capital of EUR 3,800 million. The investments have been made in Nordic mid-cap companies with focus on value creation through growth initiatives and operational improvements. Among the investments are Lindorff, Helly Hansen, Apotek Hjärtat, Carnegie, Papyrus, Dustin, Qmatic, Piab, Byggmax, Ålö, Max Matthiessen, Elixia and CTEK.

www.altor.com

 

About the ROSSIGNOL Group

The Rossignol Group, headed by Bruno Cercly, designs, manufactures and markets a broad range of sliding winter sport equipment. The global headquarters are located in the French Alps near Grenoble and houses a portfolio of strong and complementary brands with Rossignol, Dynastar, Lange, Look, Risport and Kerma.

www.rossignol.com

post #4 of 10

Hopping this works out for the best for the products we enjoy.

 

Surprised by two things: they have been profitable the last three years and that all those brands are only worth $196 million.

post #5 of 10
Quote:
Originally Posted by Maineac View Post


Surprised by two things: they have been profitable the last three years and that all those brands are only worth $196 million.

Pretty good return for Jarden. Martin's one smart cookie.
post #6 of 10
Quote:
Originally Posted by SHREDHEAD View Post


Pretty good return for Jarden. Martin's one smart cookie.

 

Looks like Jarden was just along for the ride at 17% and it was the Australian bank was in control:

 

  • Altor is acquiring a majority stake in Rossignol Group from the current owners, Australian bank Macquarie (77 percent) and U.S. sporting goods conglomerate Jarden (17 percent), which also owns K2, Marker, Volkl, and several other brands.

 

I'm surprised Jarden didn't acquire the ownership interest from the bank.  They could have owned all those brands and enjoyed the resulting economies of scale and pricing power.   As a ski buyer, I'm very happy that didn't happen.  The competition should be good for both pricing and product innovation in the long run.

 

Does anyone know if Jarden didn't want to acquire the brands, or were they unable to due to anti-trust concerns?  It seems like it would have been a no brainer for them at that price.

post #7 of 10

I'm sure Jarden was far from,  "just along for the ride".   They put Petrick in as VP Sales/Marketing and helped turn Rossi around. Tim returning to K2 was probably just writing on the wall.

 

I'll bet they just didn't get along with the Frenchies.

post #8 of 10
Quote:
Originally Posted by quant2325 View Post
The company has had more owners than the used belt sander I just picked up at the flea market.  Anyhow, Rossi still makes great skis but it sounds like it needs diversification into non-winter sports.  Like sometimes sucks when the pot you are planted inside is shrinking and not growing.

 

 

However, demand for ski equipment worldwide has been on a long decline since peaking in the early 1990s. Sales this year hit 3.2 million, down from 3.5 million in 2009 and 7 million 20 years ago, according to Reuters. The overall decline stems from a steep drop in the Japanese market, once the world’s largest, and the grown in rentals in many other countries.

 

Note:  Those numbers cannot be correct (a few zeros missing), but the trend is down.

 

Those are probably just Rossi sales, not world wide sales of skis.

post #9 of 10

Jarden tried to buy the controlling interest but was blocked by the FTC. Fear of a monopoly on bindings - specifically a control of many patents. Some of my sales reps were interviewed extensively. Erdz
 

post #10 of 10

snipped from OP's quote:
SAM Magazine post titled
ALTOR TO BUY ROSSIGNOL
.
Rossignol had sales of approximately $270 million last year and has been profitable for the past three years, Altor said. However, demand for ski

equipment worldwide has been on a long decline since peaking in the early 1990s. Sales this year hit 3.2 million, down from 3.5 million in 2009

and 7 million 20 years ago, according to Reuters. The overall decline stems from a steep drop in the Japanese market, once the world’s largest,

and the grown in rentals in many other countries.
-------------

 


Drop might have some connection to introduction of "Shaped Ski's" which
flopped at first for several years or more.
Recent turn to "rockered" and "partial rocker" reverse camber skis is confusing
to the expanding segment of older skiers in the market -also not helping.

Just a thought. -maybe not worth $ 0.02.

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