Sports Direct Takes 4.9% Stake in Amer Sports…

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).

Sports Direct Takes 4.9% Stake in Amer Sports

Britain's biggest sports retailer, Sports Direct Plc said it paid 58.4 million euros ($78.8 million) to take a strategic 4.9% stake in Amer Sports.

Sports Direct said in a statement on Thursday that the investment was consistent with its objectives stated at the time of its February flotation to expand its outdoor leisure business and pursue strategic investments in the UK and overseas..

In late March, Sports Direct’s founder Mike Ashley invested £183m (U.S. $350 million) on a 3.14% stake in adidas. The entrepreneur has used his own resources to buy the Adidas stake, rather than those of Sports Direct.

Ashley floated Sports Direct – the UK’s largest sportswear retailer – in February and personally netted about £929 million ($1.8 billion). At the time, he stated his aim was to create the biggest sports retailer in the world.

As well as the 465 Sports World discount stores chain, Sports Direct owns Lillywhites in London and brands including Dunlop, Donnay and Slazenger.

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