LionRock Acquires Outside Model Haglöfs From Asics – WWD

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The non-public fairness agency LionRock Capital has acquired the out of doors efficiency model Haglöfs AB from Asics Company.

At the moment bought in 28 nations and primarily based in Bromma, Sweden, Haglöfs has been a completely owned subsidiary of Asics since 2010.

The Swedish firm was began in 1914 by Wiktor Haglöf, a carpenter, who was intent on designing a backpack that might face up to travels by the nation whatever the climate. Along with backpacks and different equipment, Haglöfs sells efficiency attire, outerwear, climbing boots, sleeping baggage, gloves and different requirements for skiers, hikers and different out of doors fanatics. With 11 freestanding shops in Europe and two pop-ups, the corporate presents ladies’s and and males’s collections, in addition to gadgets for kids. The model’s perception is that everybody can benefit from the outdoor — regardless of the climate.

In an interview Monday, LionRock’s head of Europe Tom Pitts declined to remark concerning the phrases of the deal or Haglöfs’ annual gross sales. Layoffs at Haglöfs, which employs 240 folks, usually are not anticipated presently, he stated: “You develop by increasing your footprint. There’s nothing that’s contemplated there in any respect.”

The deal marks LionRock’s first acquisition of an attire firm that makes a speciality of out of doors put on. Haglöfs’ genuine heritage and its crossover into life-style had been a part of the enchantment, and there aren’t plans to change its motive for being, in keeping with Pitts. “When you have a look at their social footprint, it actually does resonate with somebody whose life is sort of [centered] within the outdoor. It’s this understanding of who they’re, who their constituents are and attempting to attach in each which means,” he stated.

Haglöfs opted to not provide any reductions on Black Friday, and “that’s a stand that resonates with everybody who associates with the model. And also you get it and again it,” Pitts stated.

Haglöfs is under-penetrated in sure locations in Europe, resembling Germany and France, stated Pitts, who famous the U.S. is ”very mild.” As well as, there may be some bodily presence in China, and LionRock will look to how Arc’teryx has expanded within the area. The agency isn’t affiliated with the model, however the mannequin “offers you a specific amount of consolation across the section. It’s a beautiful product and so they have executed a implausible job with it,” he stated. “They’ve executed extremely nicely with Arc’teryx on the mainland. Once we first checked out Anta’s acquisition [of a controlling stake] in Amer [Sports in 2019 for a reported $5.2 billion], we thought it was fairly a stretch valuation that they bought it. However over time they’ve executed extraordinarily nicely with that acquisition. China has actually led a number of that earnings progress.”

LionRock already has a significant connection to China, due to the previous Olympic gymnast and established govt Li Ning, who’s a “giant” restricted companion and chairman of its funding dedication. He additionally has a namesake sportswear and sport gear firm primarily based in Beijing.

A key to promoting is China is staying “true to your model. So long as you keep a sure balanced method in all issues, you’re going to be OK. The Chinese language shopper is an excellent shopper that’s by no means to be misjudged,” Pitts stated.

All in all, LionRock is “actually excited” about its new acquisition of Haglöfs endeavor, in keeping with Pitts. “This isn’t a restructuring. There are markets the place it’s under-penetrated, or not even obtainable. It has such a deep assortment and the product, we expect, is very best in school. It’s thrilling to attempt to discover a few of these various markets.“

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