ADIDAS ADDING SALOMON TO STABLE
PARIS — Adidas AG said Tuesday that it is acquiring control of French ski and sporting goods maker Salomon SA.
In the transaction, which is just the first step toward acquiring 100 percent of Salomon, Adidas will buy just over 38 percent, a stake held by Sport Developpement SCA, a holding company which represents the founding Salomon family.
Once the transaction is completed, Adidas said, it will make an all-cash tender offer for the remaining shares. This offer is expected to be completed by the end of the year, according to a Salomon spokeswoman.
The majority of Salomon shares, 55.6 percent, are publicly traded on the Paris Bourse, while the remaining 5.5 percent is in the hands of institutional investors, employees and the Salomon group.
Adidas is paying $88.14 (521.5 francs) per share for the holding company’s stake of nearly 5.9 million shares, which values the entire Salomon company at 8 billion francs.
In the year ended March 31, 1997, Salomon had net profits of $36.2 million (214 million francs) on consolidated sales of $743.7 million (4.4 billion francs).
The company makes branded ski and hiking equipment, the Bonfire snowboard apparel business, the Taylor Made golf equipment and the Mavic line of cycle components.
“This transaction marks a major step towards the establishment of the best portfolio of sports brands in the world,” said Adidas president Robert Louis-Dreyfus in a statement.
Salomon would function as a “separate operational entity” within the German-based Adidas group.
Jean-Francois Gautier, chief executive officer of Salomon, will continue to run the business and become a member of the Adidas executive board.