GIVISIEZ, Switzerland (BRAIN) — Scott Sports Board of Directors replaced CEO Beat Zaugg "to refresh Scott's development to become a world-class manufacturer in bikes and other outdoor sport categories."
Juwon Kim, a Scott Corp. Board of Directors member since 2022, succeeds Zaugg. Kim has 17 years of experience in investment banking with various international banks. He was the co-founder of a start-up venture in Korea before joining Scott Corp. majority shareholder Youngone as head of growth strategy and mergers and acquisitions.
Kim will be advised by Steve Meineke and Mathias Seidler, who have executive experience in the bicycle and outdoor gear industry.
The move comes after Youngone, a South Korean apparel brand that acquired a majority share in Scott Sports in 2015 from Zaugg, recently loaned its subsidiary 150 million Swiss francs ($166 million).
Youngone expressed confidence in the existing management and employees, according to a Scott Sports news release. "Their commitment and professionalism will significantly benefit the company during this transition phase." Also according to the release, "The board of directors of Scott emphasizes that the long-standing commitment of majority shareholder Youngone to Scott remains central and is not called into question."
Kihak Sung, Youngone chairman and a member of Scott Corporation's board, added, "Youngone has been a strong partner and long-term shareholder of Scott. We firmly believe in Scott, its state-of-the-art products, as well as the dedication and quality of its employees. With this change, Scott will strive to gain growth and market share in the future, leaving behind the current crisis in the industry."
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.
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.
