Amer Sports, parent company to ENVE Composites, has announced that they have sold ENVE to PV3, a Utah-based private investment firm.
| ENVE has gone through major changes in the past years. The brand has positive momentum, and we see that it has good potential. However, after a thorough strategic evaluation, we have concluded that the next phase of developments should happen under new ownership. We believe PV3 is the most suitable owner for ENVE to realize and drive its next growth phase.—Amer Sports’ Chief Operating Officer Michael Hauge Sørensen |
ENVE Composites was founded in 2007 as Edge Composites, changing its name to ENVE Composites in 2010. It is one of a small number of cycling brands to manufacture wheels, components, and bikes in the United States.
Amer Sports acquired ENVE in 2016 for $50 million.
In 2016, ENVE moved into its Ogden, Utah based headquarters. The 80,000 square foot building houses engineering, R&D, manufacturing, sales, marketing, customer service, and finance functions.
PV3 is the family holding company of Mark Hancock, a cycling enthusiast. He says they are dedicated to maintaining ENVE’s heritage as a Utah-based manufacturer and leader in composites technology.
| We have confidence in the direction ENVE’s management team are taking the company and we want to continue building the brand’s legacy as a performance leader and U.S. manufacturer, while providing the necessary support for continued growth. This is an opportunity to take ENVE to the next level through local Utah ownership. While the current bicycle market is challenging, ENVE is growing based on our product innovation and professional team partnerships.—Mark Hancock, Principal of PV3.ENVE’s General Manager Mike Stimola |
ENVE's General Manager Mike Stimola was brought on by Amer Sports in January 2023 and the news release says that will continue in his current role and ENVE’s operations will continue as normal. Closing is expected to take place in the next few weeks and the parties will not be disclosing the transaction details.
Steve Frothingham has an interview with ENVE GM up now on
Bicycle Retailer.
Does this not sound like a good thing? I absolutely get the corporate skepticism, but I have to imagine this is a good outcome, considering the alternatives.
It's not unheard of but you need big, f-you money to run at a major loss for a long time just because you want to live IN the lifestyle without having to actually live the lifestyle.
Best case seems to be someone like WAO. They seem to be doing really well, and hopefully don't destroy it all with a PE buy-out in the near future.
source: am carbon technician
I would say its a sign he is good with his money more than anything...so hopefully that works out for his companyand you.
Net is that this should be a very good thing for Enve. New owner that is passionate about cycling buying a brand that he is passionate about. Even if Enve loses $5M per year it is a rounding error at this level of wealth. To see a similar model look to Allied and the Walton family.
"Amer Sports has experienced success with its portfolio brands in the Greater China region, with Arc’teryx and Salomon leading the way. In the nine months to September 30, 2023, Amer Sports reported a striking 67.6 percent increase in revenue from the Greater China region, totaling $593 million, up from $353.8 million the previous year. Salomon’s revenue in Greater China hit $91.2 million between January and September 2023, a 63 percent YoY rise." (data from March 2024).
If Hancock runs Enve as a reasonable business, expecting reasonable margins, and supports its people, that's the best case scenario.
This not someone who is "rich" and has an extra $10M laying around like GG. This is someone who just attained generational wealth and had a liquidity event in early April.
That said, I'm a cynic with anything corporate (working for one of the largest corporations in the world doesn't help). I won a gift certificate at True Grit for some Enve stuff, I'm going to cash that in ASAP.
but by your logic, a bike park would be a place that needs stepping up from.... as you may find yourself socalizing at the top, middle, bottom, or on the lift... or resturaunt or parkinglot LOL
How long before they're saddled with insurmountable debt and run a 2-for-1 sale?
I don't Enve the Ogden based employees right now.
This can really only be good for them I think and I’m glad they are keeping it local. ENVE has always been an amazing company that gets shit on kinda unfairly because one or two of their employees had big egos. Everyone I’ve met there are good peeps that love bikes and seek to do the best they can. I’m biased since I got a discount on their stuff but it really is just bomber product that I trust with my life when dropping into sketchy terrain, so I hope they keep the dream alive and keep on going.
Of the "soulless corporate holding companies" Amer Sports seems to have been pretty OK, at last on the ski side. They own Solomon, Atomic and Armada, and all those brands have continued to put out compelling, high-quality products under their ownership.
Maybe a smaller more bike-focused owner will be able to do more interesting things with Enve than they could.
On the other hand, does Enve really offer any thing special besides a brand name in 2024? You want good carbon wheels, stems, bars and forks? You've got dozens of options. You want a lifetime warranty and crash replacement? Again, dozens of options.
Is there some hole in the "carbon bike components" that Enve will be able to fill under new ownership? It'd be nice if they got cheaper, but I can't really see the company whose name was a synonym for "expensive carbon components" going that direction. And other than that, I can't really think of one.
It'll also be interesting to see how much Amer made or lost on the brand. They say they've "agreed to not share details of the transaction" - but there might be something in their next financial reports that give us a clue.
Should have said, "does it matter to consumers?"
PB commenters: Corporate greed!!
Venture Capital or Private Equity buys bike company...
PB commenters: Corporate greed!!
It's lose/lose around here.
Doubt some dude who likes bikes but is a venture capitalist will do anything but devalue the brand in a bid to milk more short-term profit out of the brand.
The only way a brand like Enve keeps producing top-notch equipment is if the management is top-heavy with experienced engineers.
I hope that happens, but I doubt it.
Equity's
Next
Industry
Sacrifice:
ENVE
Maximum Hate
Maximum Ignorance
Maximum Hypocrisy
Essentially you can expect the following:
Cheaper materials/construction
Less customer support
Increased prices
Also VC ≠ PE.
-W
Having a larger parent company as an owner CAN be beneficial if long-term viability is prioritized rather than short-term profits.
We are one all the way