Cerberus Capital Management, which acquired Fila Sport in mid-2003 for $351 million including assumption of debt, has reportedly signed up Goldman Sachs and a Rothschild company to make a valuation of Fila and of its holding company, Sport Brands International, in view of their possible sale. According to a report in an Italian financial daily, the two advisors have already started to sound out potential new investors – mostly institutional ones.

The process is apparently related to positive financial developments for Fila, which made an operating profit before amortization (EBITDA) of $20 million last year on consolidated revenues of about $450 million, including $35 million in royalties.

Adding the licensees’ turnover, branded sales should amount this year to $845 million, of which 42 percent would come from Asia. As previously reported, Fila is expected to reach this year an operating margin before amortization (EBITDA) of $6 million in the Europe, Middle East and Africa region, rising to $10 million in 2007. Its turnover in the region should be in the range of $153 million this year, up from an original sales target of $146 million.

Fila is growing again strongly in Europe through a number of initiatives, including a major retail program involving corporate and franchised stores. It is spending about 10 percent of sales on marketing and communication in the region, with a focus on Italy, Spain and the UK, and the budget for next year has been increased by 25 percent, adding also the French market where it has set up a new sales network. It is now contemplating a major sponsorship again in the tennis world.

As it has done in France, Fila is aiming for a cleaner distribution in Germany, where it is discussing a special deal with a major retailer. It already has a major deal in the UK with Sports World, but it is selling there a different range from the one that it is selling in the Harrods department store and through independent retailers. Fila is looking for a new distribution partner in Russia, where a recent deal with a subsidiary of Sportmaster has not worked out.

Fila has formally announced that Stefano di Martino, the former Italian long-distance running champion who joined Fila one year ago as managing director of Fila EMEA, has been appointed also as chief product and marketing officer with global responsibilities. Luca Bertolino, former product manager of Adidas in Italy, is working under him as Fila’s global product managerfor apparel. Rob Michalis, an American who worked previously for K-Swiss, is responsible for the brand’s footwear globally out of its head office in the USA.

Meanwhile Robert Erb is leaving SBI, where he held positions in product development and marketing and as well as chief executive of the Cloudveil and Motion Mountain Wear brands. He will do consulting work for various companies in the industry while thinking about teaching college courses.

Di Martino wants Fila to focus on tennis, ski and running. Adatto, the new digital mapping program that he has launched in Italy for customized shoes, is being extended from four Foot Locker stores to 15 other retailers in various Italian cities before its international roll-out. A co-branding deal with a well-known fashion designer is in the works.