LionRock Acquires Outdoor Brand Haglöfs From Asics
The private equity firm LionRock Capital has acquired the outdoor performance brand Haglöfs AB from Asics Corporation.
Currently sold in 28 countries and based in Bromma, Sweden, Haglöfs has been a wholly owned subsidiary of Asics since 2010.
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The Swedish company was started in 1914 by Wiktor Haglöf, a carpenter, who was intent on designing a backpack that could withstand travels through the country regardless of the weather. In addition to backpacks and other accessories, Haglöfs sells performance apparel, outerwear, hiking boots, sleeping bags, gloves and other necessities for skiers, hikers and other outdoor enthusiasts. With 11 freestanding stores in Europe and two pop-ups, the company offers women’s and and men’s collections, as well as items for children. The brand’s belief is that everyone can enjoy the outdoors — whatever the weather.
In an interview Monday, LionRock’s head of Europe Tom Pitts declined to comment about the terms of the deal or Haglöfs’ annual sales. Layoffs at Haglöfs, which employs 240 people, are not expected at this time, he said: “You grow by expanding your footprint. There’s nothing that’s contemplated there at all.”
The deal marks LionRock’s first acquisition of an apparel company that specializes in outdoor wear. Haglöfs’ authentic heritage and its crossover into lifestyle were part of the appeal, and there aren’t plans to alter its reason for being, according to Pitts. “If you look at their social footprint, it really does resonate with someone whose life is almost [centered] in the outdoors. It’s this understanding of who they are, who their constituents are and trying to connect in every which way,” he said.
Haglöfs opted not to offer any discounts on Black Friday, and “that’s a stand that resonates with everyone who associates with the brand. And you get it and back it,” Pitts said.
Haglöfs is under-penetrated in certain places in Europe, such as Germany and France, said Pitts, who noted the U.S. is ”very light.” In addition, there is some physical presence in China, and LionRock will look to how Arc’teryx has expanded in the region. The firm isn’t affiliated with the brand, but the model “gives you a certain amount of comfort around the segment. It’s a wonderful product and they have done a fantastic job with it,” he said. “They have done incredibly well with Arc’teryx on the mainland. When we first looked at Anta’s acquisition [of a controlling stake] in Amer [Sports in 2019 for a reported $5.2 billion], we thought it was quite a stretch valuation that they purchased it. But over time they have done extremely well with that acquisition. China has certainly led a lot of that earnings growth.”
LionRock already has a major connection to China, thanks to the former Olympic gymnast and established executive Li Ning, who is a “large” limited partner and chairman of its investment commitment. He also has a namesake sportswear and sport equipment company based in Beijing.
A key to selling is China is staying “true to your brand. As long as you retain a certain balanced approach in all things, you’re going to be OK. The Chinese consumer is a wonderful consumer that is never to be misjudged,” Pitts said.
All in all, LionRock is “really excited” about its new acquisition of Haglöfs endeavor, according to Pitts. “This is not a restructuring. There are markets where it’s under-penetrated, or not even available. It has such a deep assortment and the product, we think, is absolute best in class. It’s exciting to try to explore some of these alternative markets.“
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