Anta seeks US$500m for Precor sale

Business | Bloomberg 27 Nov 2019

Anta Sports Products (2020) is considering selling its fitness equipment brand Precor for US$500 million (HK$3.9 billion) after being approached by potential buyers, Bloomberg reported, citing sources.

The biggest sportswear maker in China is working with an adviser for a potential sale of the US business that could fetch about US$500 million, the sources said.

A number of companies and private equity funds have shown preliminary interest in acquiring Precor, which designs and makes gym products such as indoor cycling bikes, running treadmills and elliptical machines, according to the sources.

Anta acquired Precor through its US$5.2 billion purchase of Finland's Amer Sports Oyj, which was completed in September. The deal had Chinese buyout firm FountainVest Partners, Chip Wilson, the billionaire founder of yoga apparel retailer Lululemon Athletica Inc, and Chinese internet giant Tencent (0700) as co-investors. While Anta is keen to build and expand most of the brands it acquired from Amer, fitness equipment isn't among the core assets for its growth strategy, the sources said. A sale process of Precor could start as soon as next year, one of the people said.

Deliberations are at an early stage and there's no certainty it will lead to a deal, the people said.

Shares of Anta have jumped about 101 percent this year in Hong Kong, the best performer on the Hang Seng Chinese Enterprise Index.

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