Asics Corporation has agreed to purchase 100% of Swedish outdoors products company Haglofs for 1 billion Swedish Krona, or $133.42 million at current exchange. Its product range includes apparel, backpacks, footwear and accessories.
"We are currently focused on further growth and expansion of our business on a global basis," Asics said in a statement. "Moreover, we are aggressively exploiting opportunities of M&A including the alliance with other companies to boost or supplement the existing businesses within our group."
Asics said the impact of the acquisition on the Japanese company’s consolidated financial results for the year ending March 31, 2011 will be minimal.
In a separate statemnt, Haglofs’ owner Ratos AB said Haglofs is one of the leading outdoor brands in Europe. The company develops, markets and sells technical outdoor equipment with a high level of functionality, quality and design that meets the modern day demands of people who invest in an active outdoor lifestyle. Haglofs is based in Avesta, Sweden and has been a wholly-owned subsidiary of the listed private equity company Ratos AB (publ) since 2001.
"We’ve had a very successful partnership with Ratos for nine years and we are enthusiastic about our new partner. Joining Asics enables Haglofs to become a true worldwide leading outdoor brand" said Mats Hedblom, CEO of Haglofs.
The transaction is subject to clearance from the relevant competition authorities and is expected to be finalized during the third quarter of 2010.
"The business rationale is clear. Asics has been searching for the best outdoor company to complement their core business and Haglofs has foreseen a need to find a partner with the knowledge and capacity to assist the company in a global expansion." said Mats Hedblom.
"Even though there are differences in size as well as in origin there are many similarities uniting Asics and Haglofs. Both brands have a premium position and we share the same philosophy in everything from how we develop to how we differentiate our products. At the same time it’s important to point out that even though we will now become family both companies will keep their own identity", Mats Hedblom concluded.