Scott USA acquired Garmont USA last week as part of a larger acquisition of its Italian parent company in a deal that could bolster both companies’ brands in North America.
“We are very excited about today's announcement as it marks another important step in our planned and controlled growth strategy as an innovative brand that offers year round products from head to toe,” said Beat Zaugg, CEO and Owner of Scott Sports, the Swiss company that owns Scott USA. “Adding Garmont’s line of ski boots and outdoor footwear to our North American distribution helps to promote cross-selling opportunities with other Scott products and expands our reach to winter and outdoor retailers.”
Although the company traces its roots to the United States, Scott Sports withdrew from the U.S. market in 1997 after being sold to Zaugg. The company now derives the overwhelming bulk of its estimated $400 million in revenues from Europe. In the U.S. it is best known for its bicycles, which it reintroduced in 2004 after former Cannondale executive Scott Montgomery convinced Zaugg to reopen a U.S. office in Sun Valley, ID. Under Montgomery, whose father Joe Montgomery founded Cannondale, Scott USA has made solid progress signing up independent bike dealers as well as REI and Eastern Mountain Sports.
Garmont S.r.l. was founded in 1964 by Calzaturificio Morlin, a 145-year-old Italian boot maker. A supplier of hiking and other outdoor footwear, Garmont has emerged as a top supplier of telemark and backcountry ski boots. In additional to distributing Garmont, Garmont USA owns the North American distribution rights to Bridgedale Socks and Rottefella binding. It also owns Life-Link, a maker of poles, probes, shovels and other accessories for backcountry skiing.
“This partnership will help reinforce and expand the Garmont brand presence on the North American market, ensuring a strong platform for continued growth and further strengthening our customer relationships,” said Achille Morlin, the former owner and president of Garmont S.r.l.
Scott USA took over Garmont’s North American operations Sept. 24 and will honor all preseason orders according per the terms of dealer agreements. Scott will reassign employees from Garmont’s headquarters in Portland, OR to Scott USA offices in Portland, Salt Lake City and Ogden, UT as those operations are consolidated.
The Outdoor Investment Banking Team at D.A. Davidson served as exclusive financial advisor to Garmont in the transaction.
EDITOR’S NOTE: One wonders to what extent Europe’s banking crisis contributed to this deal and will result in more shotgun weddings down the road.
