Britain's biggest sports retailer, Sports Direct Plc, paid 58.4 million ($78.8 million) to take a strategic 4.9% stake in Amer Sports. Sports Direct described the purchase as a “strategic investment” consistent with its objectives stated at the time of its February IPO to expand its outdoor leisure business and pursue strategic investments in the UK and overseas. The Helsinki-based Amer controls the Salomon and Atomic ski and snowboard brands, together with Wilson tennis and golf equipment, Precor fitness equipment and the Suunto diving and sailing brand.
Sports Direct operates some 400 Sports World stores and a range of sports brands including Dunlop, Donnay, Lonsdale and Karrimor. It also owns the Lillywhites sports chain. The company, controlled by the secretive billionaire Mike Ashley, has seen its shares slide since its IPO due to a profit warning and complaints about a lack of communication with investors and analysts. On May 31, its chairman, David Richardson, resigned after disagreements with management.
Meanwhile, Ashley – who banked £930m ($1.2 billion) from the IPO and still owns more than half the business – has been wheeling and dealing privately. He recently bought and sold a stake in adidas, netting a £29m ($39 million) profit in eight weeks, and is now buying the Newcastle United soccer team for £134m ($181 million).
