BS Investimenti and the management of Arena Distribution are paying just over €60 million for the company before assumption of debt of about €5 million, or between 6.5 and 7 times the company’s estimated operating profit before amortization and depreciation (EBITDA) of €9 million for 2005 on consolidated sales of €80 million.
The new owners have taken the place of another fund, Investitori Associati, which has obtained a nice capital gain by exiting the firm. The management, led by Cristiano Portas, has practically doubled its stake in the company to about 10 percent. BS has acquired 62 different companies in the last 17 years, including Superga and Klopman fabrics, for a total investment of €710 million.
net sales and profit dropped slightly last year in line with its gradual disengagement from the leisure/beachwear sector, where its sales had a double-digit decline, and from activewear, where sales were down in the single digits. The core pool-related business grew by more than 2 percent.
The company is targeting an EBITDA of €14 million and consolidated sales of €100 million by 2009. It wants to raise its share of the European sports swimwear market from 16 to 20 percent and it wants to enter the U.S. market. Globally, the Arena brand claims a 12 percent market share with retail-equivalent sales of €350 million, of which about 40 percent are represented by Descente, which has the rights for the Far East.
Meanwhile, Arena France has announced that it will not renew its sponsorship deal with the French Swimming Federation, which is going to be endorsed instead by TYR, like in the 1980s, because of its launch of a new merchandising program. Arena will continue to sponsor many regional and local institutions in France as well as Laure Maneaudou, the young French champion.
Arena recently signed sponsorship deals with the Czech and Danish federations. It will have a big presence at the swimming championships in Hungary, where it sponsors the national federation and claims a national market share of 40 percent.
