34 Billion 800 Million: Anta Ding Boss Official Xuan Bought The European Sports Giant, Drop Hammer Ding Tone!

The consortium of Anta sports, Fang Yuan capital, Anamered Investments and Tencent announced the successful completion of the voluntary proposal to cash the acquisition of all the publicly issued and out of stock shares of amamin sports company ("amamwin sports").

According to the final offer, the takeover of the shares is about 94.98% of all the shares and voting rights of amamin sports (excluding amaman sports or other subsidiaries).

Mr. Ding Shizhong, chairman and chief executive officer of the board of directors of Anta group, said: "today is a big day for every investor and consortium and amamin sports.

The success of the offer enables us to work hand in hand to change the future of the global sporting goods industry, a future that provides better performance, experience, higher satisfaction and enjoyment for consumers, sports fans and professionals all over the world.

We are deeply excited by the fact that the consortium of investors has assembled the top experts who are well versed in the Chinese market, new retail and high-end sports apparel.

In the coming months, we will work closely with the elite team of amamin sports to complete the privatization process and plan for a growth plan that will give full play to its future potential.

On behalf of Anta group and investor consortium, I welcome all members of amamin sports to join us to form a new family.

In order to enable the other shareholders to accept the purchase of shares, the investors consortium decided to carry out a subsequent deadline according to the terms and conditions of the offer.

The follow-up period will begin at 9:30 a.m. Finland time on March 13, 2019 and end at 4:00 p.m. on March 27, 2019, Finland time.

During the subsequent period, the tender offer can be accepted according to the acceptance procedures contained in the terms and conditions of the tender offer.

Acceptance is binding and must not be withdrawn.

The investors' consortium will announce the preliminary percentage of effective acquisition of shares within the next period of time after March 28, 2019, and publish the final percentage before April 1, 2019.

The offer price for effective acquisition of shares within the next period of time will be paid to shareholders after April 2, 2019.

The actual time taken by shareholders to acquire funds will depend on the time required for financial institutions to process payment procedures.

Anta buys Euro 4 billion 600 million euro

Is it worth it?

Ding Shizhong: the value of M & A is hard to measure with money.

For many Chinese, the amount is so high that the outside world is not optimistic about Anta's acquisition of Amer Sports (Ya Mafen).

Recently, at the 2018 performance press conference in Hongkong, 70% of the media questions were centered around this astronomical takeover, many of which were sensitive.

But Ding Shizhong seems to be in a good mood. From time to time he smiles with Zheng Jie, the president of the two sides, and Wu Yonghua, the sales president.

"Amer Sports's brand is hard to measure with money. These brands are not built in the short term, and the brand of the company is very professional in all fields.

It is very important for us to buy Amer Sports to value their growth in the Chinese market, and at the same time many brands of this company also have enough influence in the world.

At the press conference, Ding Shizhong emphasized his acquisition logic.

This tightrope like cross-border acquisition is a rare historical opportunity for Ding Shizhong to realize his dream for many years in his heart.

Ding Shizhong has said more than once, "to be the Anta of the world, not the Nike of China."

Today, the market value of Anta sports has exceeded 100 billion Hong Kong dollars, becoming the number one brand of the domestic sports brand, second only to Nike and Adidas in the world.

In the acquisition of Amer Sports and towards internationalization, Anta group recently used a financial report to create the best results since its listing to prove that it has prepared the most basic preparation for the acquisition: how to make the original brand cooperate with the new brand in a coordinated way so as to maintain a healthy and rapid growth?

Now, Ding Shizhong and his international team, using this proud report card, especially the growth path of FILA, have proved that being an international brand management company, they have made preliminary preparations.

So what preparations did Ding Shizhong make?

According to the financial report, Anta's revenue in 2018 exceeded 20 billion yuan for the first time, reaching 24 billion 100 million yuan, an increase of 44.4% over the same period last year.

This growth rate is the best result since Anta went public. In the past 10 years, Anta's revenue growth is mostly around 20%.

In terms of earning power, Anta operating profit of 5 billion 700 million yuan last year, an increase of 42.9% over the same period last year.

Gross profit margin increased 3.2 percentage points to 52.6%.

The most important concern at the conference was that in December last year, the Chinese consortium headed by Anta spent 36 billion yuan on the acquisition of Amer Sports, Finland sporting goods group, which owns dozens of high-end sports brands including the original bird.

Anta declined to answer specific details of the acquisition, but stressed that it would be announced after the completion of the acquisition.

At present, Anta's acquisition of Amer Sports is in an orderly way, and has been approved by the competent authorities of Mexico, Australia, Turkey, China and the European Union.

Zheng Jie, President of Anta, said there were 90% shareholders' approval and the rest of the deal was cash and so on. It is expected that the takeover will be completed by the end of March.

"We bought Amer Sports mainly to see the growth of the Chinese market. The brand of the company is very professional in all fields, and its sales in China are very small."

Ding Shizhong said.

As early as 2012 when Anta became the leader of local sporting goods, Ding Shizhong aimed at Nike and Adidas.

On the bookcase of his office, the art of war is shoulder to shoulder with the shoe dog of Nike founder Phil Nate (Phil Knight).

He also told the media: "before they (Nike and ADI) let us sleep, now we have to let them sleep."

Although from the financial data, the gap between Anta and the two giants is narrowing, but it is still very big.

From the market value perspective, in July 2017, Anta's market value exceeded 74 billion Hong Kong dollars and became the fourth largest sporting goods company in the world. In January 2018, Anta's market value broke through 100 billion to 100 billion 537 million Hong Kong dollars, which was second only to Nike and Adidas.

In February 26th, Anta's share price rose 0.11%, with a total market value of HK $118 billion 100 million (about $15 billion), while Nike's market value of $134 billion was 8.9 times that of Anta.

In 2017, Nike and Adidas accounted for 16.8% and 19.8% respectively in the domestic sporting goods market, ranking second and No. 1, Anta ranked third, accounting for 8%, and FILA accounted for 2.6%, ranking ninth.

As the leader of the local sporting goods industry, Anta has a long way to go.

Brand value, according to "2017 of the world's most valuable 50 fashion brands," Anta is the second highest growth brand, brand value increased 67% to 2 billion U.S. dollars, ranking from forty-sixth in 2016 to thirty-fifth.

On the same list in 2018, Anta was the twenty-eighth place.

The first seat on the list is Nike.

Adidas took a year to complete the climb from fifth to fourth.

The difference between brand competition is bigger. The two main brands of Nike and Adidas are powerful, and they invest heavily in design and technological innovation. Anta's main brand's user cognition still stays at parity and practicality.

To some extent, the brand power of Anta's main brand is also weaker than that of Lining.

In recent years, Lining has attacked the design with the help of the tidal wave of the east wind and reached the New York international fashion week.

The main brand of Anta has only promoted the "brand remolding" since the second half of 2018. It wants to be closer to the first and second line young people, but it has made slow progress and has not achieved any results yet.

"This is the decision of DNA of an enterprise.

Anta is a business oriented enterprise. To see where the biggest market is and how to get into the market more easily, it is easier to generate paction realisation and layout from a group perspective.

From the perspective of single brand, Lining has made a lot of efforts in shaping soft power.

Zhang Qingru is the judge.

The brand that Anta acquired has its own characteristics, positioned in the middle and high end, which indicates that the purpose of the acquisition is to supplement the high-end short board.

Ding Shizhong said, Anta store expansion, the main brand Anta mainly three or four line city, FILA for one, second line, Desanto is against super line.

In a word, the difference between Anta and the acquisition of brand is pointed out.

Anta's base camp in the three or four tier cities, customer groups are "poor Cock wire", want to enter the first and second tier cities, it is very difficult to win the high-end users.

This is the only way for a brand to develop in the long run.

Lining tried to break through to the first and second tier cities and capture high-end consumers, but a series of moves to change logo, change slogans and raise prices eventually failed.

Lining's foundation was also shaken. After reaching its peak in 2010, he quickly turned and lost the throne.

In the face of the sinking of Nike and Adidas, and the crisis of international agency business being recovered, in 2008, Ding Shizhong felt bitter and determined to buy and seize the initiative.

In the same year, Anta sold its international brand agency business and took the FILA the following year.

Even though FILA was in deep mire at the time, and the external voices of doubt continued, Anta decided to make acquisitions.

When Zhang Tao, vice president of Anta, mentioned the acquisition, he said: "FILA mainly takes the high-end sports route, facing the market segments such as tennis and skiing. It has an advantage in the international brand effect and technology research and development, and the acquisition is conducive to Anta to seize the high-end sports market share."

In the first few years, the success of China's acquisition of kappa allowed Anta to buy more.

After the acquisition of kappa, China not only successfully landed in the capital market, but also increased its profit from 330 million yuan to 1 billion 310 million yuan in two years.

From the perspective of consumer groups, there is more and more middle class in China, and the wave of consumption upgrading is more and more fierce. The upgrading of brands must also be on the agenda.

Besides, the top players in the high-end market have already tasted the sweetness ahead of time.

From 2016 to 2018, the revenue of Nike Greater China increased by 27%, 17% and 18%, respectively. In 2018, it exceeded 5 billion dollars in revenue.

Adidas announced in its third quarter 2018 earnings report that the Greater China region has been growing by more than 20% in 11 consecutive quarters.

The rising stars such as Puma, new Bai Lun and Asics also gained a lot. In the 2017 fiscal year, the sales volume of Asics in China increased by 34.5%.

Anta wants to rob the market with the giants, and can only buy its own short board in the middle and high-end market. Starting from the market segmentation, it will eventually win the Amer Sports, the entry-level outdoor brand Spandi, the high-end Japanese brand Descente focusing on skiing and high-end training, the Korean high-end brand Kolon Sport, and Hongkong's high-end children's wear brand Xiao Xiao cattle.

Ding Shizhong's ultimate goal is to become the world's Anta.

He said that past experience shows that Anta has the ability to mold new brands, and hopes to bring Anta's main brand to the world through managing multiple brands worldwide.

According to Bloomberg news, Anta's international goal is to increase revenue from overseas market to 40% in the next 10 years.

But at present, Anta's international foundation is still very weak. There are only a small number of distribution businesses in Southeast Asia, Eastern Europe and the Middle East market.

M & A is not an easy way to go. It is often full of thorns. Bad digestion will drag down the brand.

Since 2011, kappa, who once had no two of the scenery, has bid farewell to the peak and continues to fall.

It is too much in pursuit of fashion and professionalism. It has forgotten what the general public needs eventually and ends up in a state of warmth.

The performance of One Way is not outstanding.

The results of the first half of 2018 show that in the five years since the merger and acquisition, only 47 of China's ONE WAY's self operated stores have been established.

Lining, a pioneer of international brands, lost 56 million 935 thousand yuan in 2009 and 91 million 749 thousand yuan in 2010.

Subsequently, because of poor performance, Lining no longer disclosed the data of Lotto separately.

According to the 2017 earnings report, Lining's main brand revenue was 8 billion 819 million yuan, accounting for 99%.

This means that Lining's brand, such as Lotto, Ai Gao and Kaisheng (for China's badminton brand), can be ignored, with only 55 million yuan.

As for the four sides of the crazy expansion of the noble bird, has already tasted the "unfocused" bitter fruit.

By the end of September 2018, the business income of the noble bird was 2 billion 302 million yuan, down 0.52% compared to the same period last year. Net profit was 16 million 59 thousand and 100 yuan, down 89.14% compared with the same period last year.

Under the predicament, the noble bird embarked on the same way of selling assets as HNA and Wanda.

Anta's intensive acquisition now sees only FILA in its effectiveness. The other four international brands do not have a high profile in external propaganda, and Anta executives do not want to mention their contribution to performance.

In the earnings conference, Zheng Jie said that the biggest contribution to Anta's performance in 2018 was Anta's main brand, and the acquisition brand's contribution to the group's performance was still very small.

"For several brands that are newly purchased, Anta will interview the product and channel layer in the early stage. Once it is successful, it will start to work hard at the brand level."

Zhang Qing said, "in addition to FILA, Anta kids is doing well now, and other brands are still groping."

Sometimes, the pace of exploration will be distorted.

Yan Yan, a former Desanto employee in China, believes that the Chinese Desanto team has been overusing the FILA model.

"High-end, professional" is the brand positioning of China's Desanto, but the current strategy is not consistent with professional.

In the autumn of 2018, Yan Yan had planned to organize the triathlon China tour, which was the direction of the high-end crowd. But eventually it didn't work. The company spent all its money elsewhere.

"Other places" means that Hongkong's star Daniel Wu is invited to be the spokesman of Desanto's Chinese brand.

This model is copied by FILA.

Yan Yan also proposed the establishment of a professional product development team to open up Anta's Chinese athletes resources, develop professional sports products with Chinese characteristics, but ultimately failed to implement.

Even after FILA was digested by Anta for five years, there was a turning point.

In 2014, it turned into a deficit, and at the end of 2018, it sold more than ten billion dollars. It became the first sub brand of Anta's first entry into the 10 billion club.

However, Anta is not willing to disclose the proportion of FILA in revenue.

In the process of bringing FILA back to life, Anta kept its independent development and dug up Yao Weixiong, who served in many international brands as president of Greater China.

After taking office, Yao Weixiong made bold reforms, launched a new team, injected new genes into FILA, established "fashion + sports" as the core temperament of FILA, and avoided confrontation with Nike and Adidas in the field of professional sports.

Although Anta is satisfied with the development of the acquisition brand, the question is whether Anta can rebuild a FILA next, and most of the brands bought by Anta are still at a loss.