China’s Anta Sports Considers Selling Fitness Brand Precor

(Bloomberg) -- Anta Sports Products Ltd. is considering a sale of its fitness equipment brand Precor Inc. after receiving approaches from potential buyers, according to people familiar with the matter.

The biggest sportswear maker in China is working with an adviser for a potential sale of the U.S. business that could fetch about $500 million, said the people, who asked not to be identified because the discussions are private. A number of companies and private equity funds have shown preliminary interest in acquiring Precor, which designs and makes gym products such as indoor cycling bikes, running treadmills and elliptical machines, the people said.

Anta acquired Precor through its $5.2 billion purchase of Finland’s Amer Sports Oyj, which was completed in September. The deal counted Chinese buyout firm FountainVest Partners, Chip Wilson, the billionaire founder of yoga-apparel retailer Lululemon Athletica Inc., and Chinese internet giant Tencent Holdings Ltd. as co-investors.

While Anta is keen on building and expanding most of the brands it acquired from Amer, fitness equipment isn’t among the core assets for its growth strategy, the people said. A sale process of Precor could start as soon as next year, one of the people said.

Deliberations are at an early stage and and there’s no certainty it will lead to a deal, the people said. A representative for Anta declined to comment.

Shares of Anta have jumped about 101% this year in Hong Kong, the best performer on the Hang Seng Chinese Enterprise Index. The stock climbed 0.9% as of 2:34 p.m. local time, giving the company a market value of about HK$204 billion ($26 billion).

Founded in 1980, Woodinville, Washington-based Precor created the first cushioned treadmill, according to its website. The company supplies to fitness clubs, hotels and schools in more than 90 countries.

Other Amer brands acquired by the Anta-led consortium include Wilson tennis rackets, Louisville Slugger baseball bats, Salomon ski boots, Arc’teryx outdoor gear and Atomic winter equipment.

--With assistance from Jinshan Hong.

To contact the reporters on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Jeff Sutherland

©2019 Bloomberg L.P.