HELSINKI, Finland (BRAIN)—Mavic’s parent company said on Tuesday that it would consider divesting the cycling brand from its portfolio in order to focus on categories where it had the best long-term opportunities.
In a press release issued by Amer Sports, and released on the Helsinki stock exchange, the Finnish company said it was considering strategic alternatives to focus its business portfolio on categories where the best group-wide synergies can be achieved.
Consistent with that strategy, Amer said it is exploring alternatives with respect to Mavic, including a divestiture of the asset.
Amer Sports also owns Salomon, Wilson, Precor, Atomic, Suunto and Arc’teryx. At the time of its second quarter earnings report, released on Aug. 6, Amer Sports said that it expected the market to remain challenging for the rest of the year.
At that time, Mavic’s sales were down 15 percent year-over-year with revenue of 59.4 million euros compared with 51.8 million euros for the first six months of 2008. That decline was due to capacity constraints in high-end wheels and low delivery, particularly on the OEM side.