The tennis unit of Fischer, the Austrian ski brand, was taken over at the end of last month by Pacific-Entermark, a German company specializing in tennis strings, stringing machines and tennis accessories sold under the Pacific brand name. The terms of the transaction were not disclosed, but it will enable Pacific to offer a full range of tennis products, including racquets that will be marketed under its own name.
Fischer’s tennis unit represented only about 4 percent of the company’s sales last year, amounting to about €5 million. It sold roughly 80,000 racquets for the year, which was substantially lower than the average of the previous years, chiefly due to the rumors that had been circulating in the market about Fischer’s intention to divest the business and focus on its core winter sports business.
Fischer has already divested other side activities, particularly a lucrative automotive components business sold earlier this year. It initially sought a licensing partner for its tennis business, but ended up selling it as Pacific was interested in the existing technology.
Fischer’s tennis sales in previous years reached 130,000 to 140,000 racquets and 80,000 dozen balls. The sales of the business unit further comprised bags, apparel and accessories. Fischer’s branded tennis apparel line is likely to be discontinued, since the results were disappointing and Pacific already has its own offering. Fischer concentrated on relatively high-end tennis racquets, retailing at an average price of about €140, all racquets included.
Austria was the largest market for Fischer racquets, closely followed by the U.S., and the products were sold in about 35 countries. In some cases the distributors were the same as for Fischer skis, but in most instances the two units were split. Distribution of Pacific products and its newly acquired racquets should be bundled, but it remains to be decided along what lines.
The management and logistics of the former Fischer tennis business will move to Hochdorf in Germany, where Pacific is based. The company, which has production facilities in Germany and New Zealand, has distribution in place in more than 50 countries.
The buy should not lead to any significant staff changes, since Fischer’s tennis unit had already been more or less outsourced in the last years. Only three people at Fischer focused entirely on tennis: an employee in charge of development, who has apparently been offered work outside the company; another part-time employee in charge of sourcing, who will stay at Fischer in another position; and Harald Murauer, the head of the business unit.
In October 2007, Murauer set up an Austrian distribution company called MM Sports together with a partner, Andreas Mauerhofer, to sell Fischer tennis products in the country. This company then obtained a deal to sell Under Armour in Austria and Slovenia, while Murauer continued to supervise Fischer’s international sales. All along, Murauer continued to head up the Fischer tennis unit. MM Sports will fully take part in the transition, for example introducing Pacific to Fischer’s sourcing partners in the Far East.
The team around Murauer has already finalized a range of Pacific racquets that will be introduced to international partners in October and should be available in the market from the beginning of next year. Players using Fischer racquets have also been approached to consider the switch to Pacific-branded products.
Pacific has been scouring for opportunities to have its own racquets business for several years. Marcus Schwarz, its chief executive, stated that the company was particularly interested in Fischer’s technological know-how and its reputation in terms of service.
The Fischer tennis unit has barely made profits in the last years. However, this could be partly attributed to the fact that it had to shoulder a share of the operating costs of the Fischer ski business, and the tennis business would have been more profitable as a stand-alone entity.
