Wanda Sports Group Company Limited (the “Company” or “Wanda Sports
Group”) (NASDAQ: WSG) today announced that it has entered into a
definitive stock purchase agreement with Advance, a private,
family-owned business, to sell The IRONMAN Group in an all cash
transaction at an enterprise value of US $730 million (subject to
customary purchase price adjustments).
The IRONMAN Group is comprised of a global portfolio of mass
participation sports events, across triathlon, running, trail
running, cycling and mountain biking. As part of the
agreement, Wanda Sports Group will continue to operate IRONMAN® and
IRONMAN® 70.3® triathlon series, Rock 'n' Roll Marathon Series® and
Epic Series® off-road mountain bike series races of The IRONMAN
Group in China under an exclusive license agreement.
Hengming Yang, President and CEO of Wanda Sports Group, said:
“This transaction represents a great outcome for both parties.
Advance is acquiring the world’s largest organizer of mass
participation sports events and a portfolio of brands synonymous
with excellence, and we will unlock significant value for our
shareholders.
“Looking ahead, we will continue to leverage the strengths of
our Infront and Wanda Sports China businesses to expand our global
sports, media and marketing platform,” added Mr. Yang. “Our focus
remains on ensuring our long-term partners get the most out of
every event by increasing appeal, reach and fan engagement,
organizing, operating and licensing popular mass participation
events, and strengthening our foothold in China to serve the large
and fast growing sports market. We will also benefit from a
stronger balance sheet as we execute our strategy and create
shareholder value.”
Andrew Messick, President & CEO of The IRONMAN Group, said:
“We thank Wanda Sports Group for its support over the past four
years and are proud of what we have accomplished together. We
look forward to continuing our work in China with Wanda Sports
Group in the coming years. Further, we are excited to join
forces with Advance and benefit from its breadth of expertise as we
continue to deliver the exceptional experiences for which we are
known.”
Based in New York, Advance owns, operates and invests in
companies spanning media, entertainment, technology, communications
and education.
Subsequent to the sale, Wanda Sports Group will continue to
operate three business segments – Mass Participation, Spectator
Sports, and Digital, Production, Sports Solutions (DPSS). For
its international Mass Participation business, the Company, through
Infront, will continue to organize, operate and license a broad
portfolio of mass participation sports events for amateur athletes,
with the focus on running, hiking, road cycling, fitness
competitions, and obstacle course racing. In China, the
Company has a combination of an existing portfolio of city
marathons, such as the Chengdu Marathon and Shenyang International
Marathon, and races and events that the Company has rights to under
the exclusive license agreement with The IRONMAN Group.
The sale is subject to customary conditions, including
regulatory approval, and is expected to close in the second quarter
of 2020. The Company intends to use the net proceeds from the
sale to repay the principal amount of US$230 million and related
interest and fees outstanding under the Credit Suisse facility and
the US$50 million outstanding under a promissory note issued to
Wanda Sports & Media (Hong Kong) Holding Co. Limited. As
to the balance of the proceeds, the Company intends to use all or a
substantial portion of them to fund dividends or share buy-backs,
subject to shareholder approval.
Credit Suisse acted as the exclusive financial advisor and Reed
Smith LLP acted as the legal advisor to Wanda Sports Group in this
transaction. Advance was advised by BofA Securities and Sullivan
& Cromwell LLP.
About Wanda Sports Group
Wanda Sports Group is a leading global sports events, media and
marketing platform with a mission to unite people in sports and
enable athletes and fans to live their passions and dreams. Through
our businesses, including Infront and, pending its sale, The
IRONMAN Group, we have significant intellectual property rights,
long-term relationships and broad execution capabilities, enabling
us to deliver unrivalled sports event experiences, creating access
to engaging content and building inclusive communities. We offer a
comprehensive array of events, marketing and media services through
three primary segments: Mass Participation, Spectator Sports and
Digital, Production, Sports Solutions (DPSS). Our full-service
platform creates value for our partners and clients as well as
other stakeholders in the sports ecosystem, from rights owners, to
brands and advertisers, and to fans and athletes.
Headquartered in China, Wanda Sports Group has more than 60
offices and 1,600 employees around the world. For more
information, please visit
http://investor.wsg.cn/investor-relations.
Cautionary Statement Regarding Forward-Looking
Statements
This announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements can be identified by
terminology such as “will,” “estimate,” “project,” “predict,”
“believe,” “expect,” “anticipate,” “intend,” “potential,” “plan,”
“goal” and similar statements. The Company may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission, in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Such statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. All forward-looking statements speak only
as of the date of this press release and are expressly qualified in
their entirety by the cautionary statements included in this press
release. The Company disclaims any obligation to update or
revise forward-looking statements that may be made to reflect
events or circumstances that arise after the date made or to
reflect the occurrence of unanticipated events, other than as
required by law.
For investor and media inquiries, please
contact:
In China:
Wanda Sports GroupEdith KwanTel: +86 (10) 8558 7456E-mail:
ir@wsg.cn
In the United States:
Sard Verbinnen & CoPaul ScarpettaE-mail:
WandaSports-SVC@SARDVERB.com
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