SEOUL, Korea (BRAIN) — South Korean apparel brand Youngone Corp., which acquired a majority share in Scott Sports in 2015, has loaned its subsidiary 150 million Swiss francs ($176 million).
In a filing with South Korean financial regulators, Youngone said it made the investment in the form of a 4.6% loan at the end of 2023. "SCOTT SPORTS SA plans to use this money loan for the company's working capital, etc., and will appoint a person designated by the company as the Financial Controller to manage and supervise the process," the filing said.
The filing also disclosed that Scott Sports made a profit of $35.8 million in 2022 on sales of $628 million and profit of $23.2 million in 2021 on sales of $695 million.
The loan will mature on Dec. 27 this year, with 100 million Swiss francs due on Jan. 2, 2025. The loan is scheduled to be made in installments throughout this year according to the filing.
Youngone is a supplier to brands including Patagonia, Adidas, Lululemon, Outdoor Research and The North Face, with factories in Korea, Bangladesh, China, Vietnam and Thailand. It also is a majority share owner of Outdoor Research. It acquired a 20% share in Scott in 2013 and expanded it to 50.01% in 2015, taking over the majority position from Beat Zaugg, who is Scott Sports SA's CEO.
