Telemos Capital acquires Mammut

The transaction is expected to close by mid-2021.

Telemos intends to support Mammut in the development of its products, services and sales channels, as well as with its growth in existing and new international markets, according to a statement. The GP said in the same statement that it was attracted to Mammut due to its strong brand positioning in the outdoor clothing market.

Telemos Capital invests in European business services, healthcare services and consumer goods and services businesses, deploying equity of €50-200m per deal. The firm is backed by family capital and invests via an evergreen capital structure.

Telemos's current portfolio companies include Switzerland-headquartered ophthalmology clinic group Sanoptis, as well as radiotherapy clinic chain Medeuropa.

Unquote sister publication Mergermarket first reported in November 2019 that Conzzeta was to place Mammut up for sale, since the brand was not part of its core industrials focus.

In March 2020, Mergermarket reported that Lazard had been hired to explore options, although the sale process had not yet begun. The company generated around CHF 20m in EBITDA at the time, sources told Mergermarket.

A spokesperson for Conzzeta told Mergermarket in November 2020 that first-round bids in the process were due by Christmas that year, with information memorandums sent to more than 100 parties.

Bidders in the second round of the process included Hillhouse Capital and Amer Sports, Mergermarket reported.

One source also told Mergermarket that the vendor was expecting an entry multiple of around 15x, with the company positioned by the vendor as an e-commerce business, although the source added that interested buyers would be unlikely to pay this multiple.

According to Mammut's annual report for 2020, the company posted 2020 revenues of CHF 218m, compared with CHF 268m in 2019, corresponding to a decline of 16.2% on a comparable basis. Its operating result was -CHF 24.5m for the 2020 period.

Sources told Mergermarket that the company had an EBITDA margin of 9% in 2019, suggesting EBITDA of around CHF 24m.

A source close to the situation told Unquote that the figure of CHF 24m is broadly correct as a 2021 forecast for the company; Mammut was not marketed based on 2020 figures, given that 2020 was a challenging year for many B2B and direct-to-consumer retail businesses. The same source confirmed that the 15x expectation did not materialise, adding that the deal is not leveraged.

Telemos declined to comment when approached by Unquote.

Company
Founded in 1862 and headquartered in Seon, Mammut sells outdoor clothing, shoes and hardware for mountain sports, both via stores and its website. Mammut employs 800 staff and has operations in 40 countries. The firm posted revenues of CHF 218m in 2020.

People
Telemos Capital – Philippe Jacobs (founder, executive chairman).
Mammut – Oliver Pabst (CEO).
Conzzeta Group – Michael Willome (CEO).

Advisers
Equity – GCA Altium (corporate finance); Homburger (legal).
Vendor – Lazard (corporate finance); Baker McKenzie (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• DACH
• Consumer
• Switzerland