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Mavic’s parent company Amer Sports acquires ENVE Composites

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Enve carbon road hub super light-8

Amer Sports, which owns Mavic and other outdoors brands, has just announced their acquisition of ENVE Composites for $50 million in cash.

The official statement (copied after the break) says the deal expands Amer Sports’ operational scale, which seems interesting considering ENVE’s comparatively small manufacturing facility in Ogden, Utah. The statement also claims ENVE’s annual sales to be around $30 million, which is a rare peek into the size of the until-now privately held company.

Most recently, ENVE has unveiled ultralight full carbon hubs and tubular cyclocross rims, as well as recalling some road forks. We’ll see ENVE at NAHBS this weekend and get a little more on the story and, rumor has it, see a new product or two on various bikes…

Press Release from Amer Sports: To accelerate its Cycling business, Amer Sports Corporation has acquired ENVE Composites LLC, based in Utah, USA. ENVE is a fast-growing brand in high-end carbon wheels, components, and accessories for road and mountain biking with annual sales of approximately USD 30 million. The acquisition accelerates Amer Sports Cycling business especially in the United States and provides further expansion opportunities internationally. ENVE brings capabilities in carbon technology, and it offers operational scale and synergy benefits complementing Amer Sports’ cycling category.

The acquisition price is USD 50 million in an all-cash transaction. The acquisition will have no material impact on Amer Sports’ 2016 financial results, and it will be accretive to Amer Sports EBIT margin as of 2017. The closing of the acquisition is expected in the first quarter of 2016.

Amer Sports
Amer Sports is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto and Precor. The company’s technically advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group’s business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports shares are listed on the Nasdaq Helsinki stock exchange (AMEAS).

UPDATED:

Press Release from Enve:

ENVE Joins the Amer Sports Family
February 22, 2016 – Ogden, Utah, USA – ENVE is pleased to announce that ENVE is joining the Amer Sports family. Amer Sports is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto and Precor. The company’s innovative and technically advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. ENVE will remain in Ogden and continue with their plans to move into a new operations and manufacturing facility this fall. ENVE’s Senior Management Team, including CEO Sarah Lehman, will remain at ENVE. ENVE will complement the Mavic brand and enable ENVE to grow internationally, as part of the Amer Cycling portfolio.

ENVE CEO, Sarah Lehman:

“After owning the business for over ten years and growing the company to the strong brand that exists today, the ENVE owners felt that Amer Sports would be good stewards of the brand and a great home for our employees,” 

ENVE Composites
ENVE Composites is a manufacturer of handmade carbon fiber bicycle rims and components. Partnering with the prominent frame builders of our time and the world’s best athletes, ENVE combines the best composite technologies with real world athlete feedback to provide our customers with the ultimate in performance, durability, and quality. ENVE designs and manufactures 100% of their rims in their Ogden, Utah, USA facility.

ENVE.com

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57 Comments
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Mike
Mike
8 years ago

Congrats to the Enve guys on a successful exit. (Yeah, yeah, I know the founders will be involved with the company still…)

J N H
J N H
8 years ago
Reply to  Mike

I guess the big question is, does this mean ENVE’s carbon know how is going to result in lower cost Mavic branded carbon wheels whilst ENVE carries on as a halo brand. Or does it mean ENVE’s US manufacturing is about to vanish and the name will just become a sticker on Mavic carbon whatever.

:(
:(
8 years ago

Another company ruined….

gerald
8 years ago

dommage

will
will
8 years ago

Synergy! Could never afford anything ENVE, so whatever…

Flatbiller
Flatbiller
8 years ago

Well, there goes ENVE as the cool little niche company that trailhead bros will stop celebrating since they’ve now “sold out to The Man, braaah. Pass me another overly-hoppy IPA.”

Mr. P
8 years ago
Reply to  Flatbiller

You can never have an over-hoppy IPA…

Steve @ G4G
8 years ago
Reply to  Mr. P

Amen, Mr. P!

will
will
8 years ago
Reply to  Steve @ G4G

Depends what sorta “hoppy” you’re talking about. Easy to be too bitter, but can’t get enough of the citrusy dankness!

Matt Grothoff
8 years ago
Reply to  Flatbiller

Now THAT’S funny.

Jeb
Jeb
8 years ago

I don’t know how this is a bad thing. Magic does some pretty cool stuff they were just slow to react to change, this should help that. And the ENVE guys get some reward for their hard work.

John
John
8 years ago
Reply to  Jeb

Mavic has continued to be adamantly opposed to wider rims, in spite of all evidence to the contrary. I guess we can expect narrow Enve carbon rims in the near future?

Rixter
Rixter
8 years ago

So Mavic now makes toroidal wheels!

Veganpotter
Veganpotter
8 years ago
Reply to  Rixter

They already had them

Rixter
Rixter
8 years ago
Reply to  Veganpotter

Seriously? I thought all the Mavic carbon designs were based on rather old ‘V’-shaped patterns

PsiSquared
PsiSquared
8 years ago
Reply to  Rixter

Mathematically, all bike rims are toroids, but I suspect you meant “toroidal” in the Zipp, cross sectional profile sense.

Cheese
Cheese
8 years ago
Reply to  PsiSquared

Not single wall fat bike rims, though.

Kevin
Kevin
8 years ago

What a fantastic combo…
The legacy of Mavic and accessibility of Enve.

kt
kt
8 years ago

So does that mean all Enve rims will now be narrow?

Veganpotter
Veganpotter
8 years ago
Reply to  kt

It means you’ll be getting low engagement freehubs that sometimes slip. You’ll also never be able to find spokes anywhere

Thomas
Thomas
8 years ago
Reply to  Veganpotter

NAILED IT PERFECTLY.

Mike Newberry
8 years ago

@Veganpotter…that’s some funny sh*t!!!

riley martin
riley martin
8 years ago

money talks…..and I really really really hope that Enve is able to uphold its fine image. And not fall victim to the bad crap that Mavic seems to be infected with…….

Padrote
Padrote
8 years ago

@flatbiller if you think “trailhead bros” are going to mourn the assimilation of “a cool little niche company” that only dentists, techies, and industry people can afford then I believe you are incorrect.

Mike
Mike
8 years ago
Reply to  Padrote

@Padrote Hey now, that’s insulting! Us lawyers can afford Enve products too! (Just kidding… no I’m not… but seriously their products are expensive even by my standards… ).

Mark V
Mark V
8 years ago

Maybe this means Mavic goes up for sale and on the chopping block to the highest bidder?!?!

Craig
Craig
8 years ago

The owners of Enve have done a great job, that’s a lot of money, good on them for creating such a valuable company.

1Pro
1Pro
8 years ago
Reply to  Craig

Here’s to hoping the ousted founder J.S. gets some of this nut.

J N H
J N H
8 years ago
Reply to  1Pro

Depends whether he was smart enough not to sign away any of his stake when they kicked him out. Too many company founders get kicked out, then sign whatever to get a pittance of money out of their company and lose their claim, usually in the run up to the company selling for large sums of cash.

Brett
Brett
8 years ago

here here, Craig.

Dude
Dude
8 years ago

Mavic gets some real wheel engineers at last!

banana
banana
8 years ago

Mavic did not buu Enve. Nor did Salomon. Amer Sports did. Seems like a great family!

Soeren
Soeren
8 years ago

This has nothing to do with mavic… Come on guys…

Kernel Flickitov
Kernel Flickitov
8 years ago

All is good as long as Amer doesn’t create a scenario with ENVE like what SRAM did to ZIPP, by making rims unavailable for custom builds.

Kayce
Kayce
8 years ago

There are plenty of ways to get Zipp custom builds. There are literally hundreds of certified custom builders.

Kernel Flickitov
Kernel Flickitov
8 years ago
Reply to  Kayce

ZIPP stopped providing standalone rims to dealers shortly after the acquisition. What you see left at some shops is overstock.

Chefdog
Chefdog
8 years ago

They still provide rims to Wheelbuilder who I believe has exclusive on their custom builds.

Kernel Flickitov
Kernel Flickitov
8 years ago
Reply to  Chefdog

That’s a terrible biz model. Exclusive rights to maybe one or two online shops?! Truth be told I’m not missing building with Zipp at all, terrible QC and a max KGF of only 90! I’ll take ENVE all day as long as they still support shops.

comrad
8 years ago

Wrong, ZIPP still supplies rims to QBP, arguably the largest distributer in the country.

Kernel Flickitov
Kernel Flickitov
8 years ago
Reply to  comrad

Wrong, QBP sells complete ZIPP wheel sets they do NOT supply shops with stand alone rims. I’m logged into their site pretty much 24/7. Also wrong again, Q is not “arguably” the largest distributer in the country, they are without question.

silverlining
silverlining
8 years ago

Well, they do still speak a lot of french in Vietnam…….

Dan
Dan
8 years ago

I miss those days when Syncros was still a niche brand

Ben
Ben
8 years ago

According to Jake Pantone, ENVE’s director of marketing, it will be business as usual for ENVE. The company will remain in Ogden and the planned move into a new operations and manufacturing faculty will go forward as planned this fall.

“ENVE and Mavic will integrate from a distribution and customer service standpoint where it makes since, but those plans have yet to be solidified,” Pantone said.

dr_lha
dr_lha
8 years ago
Reply to  Ben

Mavic have customer service?

Conscience of a Conservative
Conscience of a Conservative
8 years ago

Could wind up looking similar to Campy vs Fulcrum. Probably Mavic gets access to patents and know how, Enve keeps doing what they’re doing, where they’re doing it and how they’re doing it while getting access to better pricing and more capital. Stores and distributors might consolidate across the two brands. If anything this is Mavic’s to screw up. It has the hallmarks of a good combination otherwise.

mac
mac
8 years ago

Has there ever been an acquisition where the press release said “We’re buying this ball of crap cause they have one product we want. After we figure out the lay of the land and people forget about this deal, we’re closing the doors and sending everyone home”? Give it time.

bearCol
bearCol
8 years ago

I can’t keep up with who bought who anymore. All I know is pretty much every company I’ve supported over the past 5 years is under new ownership now. Hard to know if you’re going to get the same quality/service from the companies you’ve supported in the past anymore.

chase
chase
8 years ago

ENVE makes cool stuff but is priced so far from reasonable for even high end buyers like myself. I find this sale price stunning. I cannot fathom how many wheels they actually sell. I think Ive seen one set on a real bike , not in a magazine in 5 years of trail riding here in the Bay area.
I think the Chicom’s have had to have a severe impact on that market as the quality is very comparable and maybe better in some cases.
Good on the owners for exiting and hopefully making a few bucks. Time will tell what Amer does with it.
Capitalism is a good thing.

sad
sad
8 years ago
Reply to  chase

I havent seen an ENVE set in 5 years in the bay so far. ur lucky 🙁

SNIPE-HUNTER
8 years ago

Now, I just sift through the comments to see what the “Flatbiller” has to say. That guy’s cracking me up!

Skip
Skip
8 years ago

This reminds me of the Simpsons episode where Homer got a teleporter, when the dog and cat both went through at the same time, and one came out with two heads, and one came out with two tails (“you can be Lisa’s”)…

John
John
8 years ago

This news is just…

… awful.

deven8
8 years ago

Chase
I live in the bay area (marin) I ride enve they came standard on my MTB bike and I agree I have only seen maybe another couple in the last five years on a Mountain bike, now on the road I have seen only those posted on the web from local shops SV and AC and a couple others in real life. I actually think they sell more forks and stems then anything else. I also choose to ride my NOX composites with industry nine hubs (thanks Bike Rumor) a lot as I feel they are just as good as my enve’s. So go figure. Anyway I do ride mavic and although they should go wider they do make solid wheel sets.
But 50 million seem like a crazy price to buy enve. It will be interesting to see where they end up in the future.

pTymnWolfe
pTymnWolfe
8 years ago

I like turtles

Brian
Brian
8 years ago

RIP ENVE

Ben
Ben
8 years ago

Not sure why so many are confused by the purchase price. Amer actually got a bargain. $30M in revenue…most businessess go for 3x’s annual revenue. Additionally, just because they aren’t popular in your particular riding area doesn’t mean they aren’t popular. So, let’s break it down very simply…$30M in rev. Let’s assume they just sold wheels at $2500 a set. That’s 12,000 wheel sets. Spread that around the world and it seem about right.

Robo
Robo
8 years ago

We sell a crap ton of Enves and, if this is what you’re into, they aren’t THAT expensive in the grand scheme of things…

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