Amer Sports, Inc. Announces Launch of a Public Offering of 34,000,000 Ordinary Shares

Rhea-AI Summary

Amer Sports (NYSE: AS), a global group of iconic sports and outdoor brands, has announced a public offering of 34,000,000 ordinary shares. The company has granted underwriters a 30-day option to purchase up to an additional 5,100,000 shares. The net proceeds will be used to repay a portion of outstanding borrowings under term loan facilities. BofA Securities and J.P. Morgan are leading the offering as joint book-running managers, with Goldman Sachs, Morgan Stanley, Citigroup and UBS Investment Bank acting as bookrunners.

Positive

• Debt reduction through loan repayment using offering proceeds
• Strong underwriting syndicate including major investment banks

Negative

• Potential shareholder dilution from 34 million share offering
• Additional dilution risk from 5.1 million share underwriter option

Insights

Financial Analyst

This share offering represents a significant capital raise, with Amer Sports offering 34 million ordinary shares plus a potential additional 5.1 million shares through the underwriters' option. The primary purpose is debt reduction, specifically targeting their term loan facilities, which signals a strategic move to improve their capital structure.

The involvement of major investment banks like BofA Securities, J.P. Morgan, Goldman Sachs and others as underwriters adds credibility to the offering. However, investors should note this will lead to dilution of existing shareholders' ownership. The timing and pricing of the offering will be important factors in determining its success, especially given current market conditions.

Market Research Analyst

The sports and outdoor industry context is vital for understanding this offering. Amer Sports, with its portfolio of iconic brands, is positioning itself for potentially improved financial flexibility through debt reduction. This move could enhance their competitive position in the market, though the success depends on market reception and final pricing.

The registration statement's pending status and the standard regulatory disclaimers indicate this is still in early stages. Investors should carefully review the prospectus when available for complete terms and risk factors. The offering's size suggests significant institutional interest will be needed for successful placement.

HELSINKI, Finland--(BUSINESS WIRE)-- Amer Sports, Inc. (NYSE: AS) (“Amer Sports”), a global group of iconic sports and outdoor brands, announced today the launch of a public offering of 34,000,000 ordinary shares. In connection with the offering, Amer Sports has granted the underwriters a 30-day option to purchase up to an additional 5,100,000 ordinary shares.

Amer Sports intends to use the net proceeds it receives from the proposed offering to repay a portion of our outstanding borrowings under our term loan facilities.

BofA Securities and J.P. Morgan are acting as joint book-running managers for the proposed offering. Goldman Sachs, Morgan Stanley, Citigroup and UBS Investment Bank are acting as bookrunners for the proposed offering.

The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus relating to the proposed offering may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the preliminary prospectus may be obtained from BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC, 28255-0001, Attn: Prospectus Department, by email at dg.prospectus_requests@bofa.com; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 866-803-9204 or by email at prospectus-eq_fi@jpmorganchase.com and postsalemanualrequests@broadridge.com.

A registration statement on Form F-1 relating to the proposed offering has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended. The proposed offering is subject to market conditions, and there can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the proposed offering.

About Amer Sports, Inc.

Amer Sports is a global portfolio of iconic sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Peak Performance, Atomic, and Armada. Our brands are known for their detailed craftsmanship, unwavering authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting edge innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best.

With over 11,400 employees globally, Amer Sports’ purpose is to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai, we have operations in 40+ countries and our products are sold in 100+ countries. Amer Sports generated $4.4 billion of revenue in 2023.

Forward Looking Statements

This press release includes statements relating to a potential offering of ordinary shares of the Company that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “target,” “outlook,” “believes,” “intends,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology. These statements are based on management’s current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of factors relating to, without limitation: the strength of our brands; changes in market trends and consumer preferences; intense competition that our products, services and experiences face; harm to our reputation that could adversely impact our ability to attract and retain consumers and wholesale partners, employees, brand ambassadors, partners, and other stakeholders; reliance on technical innovation and high-quality products; general economic and business conditions worldwide, including due to inflationary pressures; the strength of our relationships with and the financial condition of our third-party suppliers, manufacturers, wholesale partners and consumers; ability to expand our DTC channel, including our expansion and success of our owned retail stores and e-commerce platform; our plans to innovate, expand our product offerings and successfully implement our growth strategies that may not be successful, and implementation of these plans that may divert our operational, managerial and administrative resources; our international operations, including any related to political uncertainty and geopolitical tensions; our and our wholesale partners’ ability to accurately forecast demand for our products and our ability to manage manufacturing decisions; our third party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; the cost of raw materials and our reliance on third-party manufacturers; our distribution system and ability to deliver our brands’ products to our wholesale partners and consumers; climate change and sustainability or ESG-related matters, or legal, regulatory or market responses thereto; changes to trade policies, tariffs, import/export regulations, anti-competition regulations and other regulations in the United States, EU, PRC and other jurisdictions, or our failure to comply with such regulations; ability to obtain, maintain, protect and enforce our intellectual property rights in our brands, designs, technologies and proprietary information and processes; ability to defend against claims of intellectual property infringement, misappropriation, dilution or other violations made by third parties against us; security breaches or other disruptions to our IT systems; changes in government regulation and tax matters; our ability to remediate our material weakness in our internal control over financial reporting; our relationship with our significant shareholders; other factors that may affect our financial condition, liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available at www.sec.gov, including, without limitation, our reports on Form 20-F and Form 6-K. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.

Source: Amer Sports, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202071396/en/

Investor Relations:

Omar Saad

Vice President, Finance and Investor Relations

omar.saad@amersports.com

Media:

Reeta Eskola

Director, Communications

reeta.eskola@amersports.com

Source: Amer Sports, Inc.

FAQ

How many shares is Amer Sports (AS) offering in its public offering?

Amer Sports is offering 34,000,000 ordinary shares, with an additional 30-day option for underwriters to purchase up to 5,100,000 shares.

What will Amer Sports (AS) use the proceeds from its share offering for?

Amer Sports intends to use the net proceeds from the offering to repay a portion of its outstanding borrowings under term loan facilities.

Who are the lead underwriters for Amer Sports (AS) public offering?

BofA Securities and J.P. Morgan are acting as joint book-running managers for the offering.