Outdoor financials: Mammut selling Toko to Swix Sport, plus Hanesbrands
Mammut Sports Group AG said it's selling the Toko brand to a new subsidiary of the Norwegian company Swix Sport AS, and Hanesbrands, parent of Duofold, said it's acquiring GearCo Inc., more commonly known as Gear For Sports, for $55 million.
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Mammut selling Toko to Swix Sport
Effective Sept. 1, Mammut Sports Group AG said it is selling the Toko brand to a new subsidiary of the Norwegian company Swix Sport AS to focus on its Mammut brand. Representing about 5 percent of the company’s annual sales, Toko offers a wide range of ski wax, tools and care products.
“Mammut’s rapid growth over recent years and the challenges of its future worldwide expansion require all our efforts and these are the driving factors behind this transaction,” said Rolf G. Schmid, CEO of Mammut Sports Group, in a statement.
Swix said it will pursue a two-brand strategy, with separate product portfolios and distribution channels, and both brands will benefit from collective investments in product development, production and logistics.
Swix will take over the entire Toko team and operate the Toko business out of Altstätten, Switzerland, Toko’s former home. Brand manager Thorsten Walter will continue to lead the new company, which will be called Toko-Swix Sport AG.
Also, Ian Harvey will continue to run the Toko brand for the U.S. market and, at this time, all Toko sales reps will be retained. Toko marketing activities will be independent from Swix.
Duofold parent to buy Gear For Sports for $55 million
Hanesbrands (NYSE: HBI), parent of Duofold, said it is acquiring GearCo Inc., more commonly known as Gear For Sports, for $55 million in cash and assuming $170 million in debt from the company.
It said the deal should close in the fourth quarter and boost earnings by about $0.20 per share in the first year. It is expected to increase earnings by $0.30 per share the year after that.
GearCo already sells apparel under Hanesbrands’ Champion label, as well as licensed logo apparel in college bookstores.
It will also help build Champion activewear sales and increase sales of higher-margin graphic clothes. After the deal, 20 percent to 25 percent of Hanesbrands outerwear segment revenue will be graphic clothes, it said.
Hanesbrands affirmed yearly guidance of $2.25 to $2.35 per share.
–Compiled by Wendy Geister
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