Amer Sports revealed an agreement reached with a Chinese technology company, Liesheng, to sell its Finnish-based Suunto brand, which specializes in sports watches, dive computers and other precision sports instruments.
Amer said the sale was in line with its strategy to focus on developing internationally recognized sporting goods brands in the lifestyle, apparel and footwear segments, shifting more business to DTC channels and strengthening its presence in major markets such as China and the U.S. In the same vein, Amer has already sold Precor to Peloton Interactive. According to Michael Hauge Sørensen, chief operating officer of Amer Sports, Suunto is not part of his company’s core business. “After a careful review, we have concluded that an owner such as Liesheng, with its foundation in technology and R&D, is desired to unlock the full potential of Suunto. We believe that this transaction is a good fit for all parties,” he commented.
Established in 2015 in Guangdong, China, Liesheng sells its products in more than 100 countries. It claims to be a global leader in wireless audio with its Haylou consumer electronics brand. Liesheng has also further explored the fields of healthcare, IOT and Big Data. In 2017, Liesheng received certification as a national high-tech enterprise in China. According to the company, 60 percent of its employees are engaged in research and development, and its annual investment in R&D significantly exceeds the industry average.
“The acquisition of Suunto is an important part of our growth strategy, and we see great synergies between the two companies. As a global consumer-electronics company, Liesheng offers Suunto unique technological advantages in product development, centralized sourcing, and access to wider international markets, especially in Asia. For Liesheng, Suunto offers access to new markets and product categories, in addition to Suunto’s strong brand heritage,” said Ma Hao, chairman of Liesheng.
“I’m excited to start the next phase of our journey and join forces with Liesheng,” commented Suunto’s CEO and brand president, Heikki Norta. “Our operations complement each other well, with no overlapping products and markets. Having a focused and successful wearables-industry player as Suunto’s owner will help power Suunto’s growth and broaden our shoulders in innovating fit-for-purpose products for outdoor adventures.”
Suunto will continue to conduct its business from Vantaa, Finland. The Suunto brand and its products, services, business relationships and staff will remain unchanged. The transaction’s closing is subject to regulatory and other required approvals and the satisfaction of certain economic conditions. The parties have agreed not to disclose further details. The transaction is expected to close in the first half of 2022.
Suunto was established in 1936 by a surveyor and inventor, Tuomas Vohlonen, as a family business and initially produced compasses. Starting in 1987, Suunto developed and produced dive computers and, since the 1990s, electronic compasses as well as outdoor and sports watches. In 1999, the company was acquired by Amer Sports, which is now controlled by Chinese interests.
