Negotiations began late last year, and the deal was finalized on Wednesday nightGETTY IMAGES
Advance Publications Inc. Chief Strategy & Development Officer Janine Shelffo said the company had its eye on Ironman for some time before finalizing a deal to acquire the endurance event organizer from Wanda Sports Group this week. The all-cash transaction values Ironman at $730M. Orkila Capital joins Advance -- the parent company of Sports Business Daily/Sports Business Journal -- as a minority investor. Ironman has a tremendous international presence, running more than 235 events in over 50 countries. "We met probably a year ago for the first time with (Ironman) CEO Andrew Messick ... and we got very excited," Shelffo said. Those hopes were initially shelved as Ironman parent company Dalian Wanda Group packaged its sports properties into Wanda Sports Group, which went public on Nasdaq in July. However, subsequent market struggles led to reopened conversations. Wanda’s share price dropped 36% from its IPO price on its first day of trading, closing at $5.16. Shares dropped below $3 in November. Shelffo: "We feel really lucky that, at the end of the day, Wanda decided that selling the business made the most sense for them. And we were there to continue the conversation." Negotiations began late last year, and the deal was finalized on Wednesday night. Advance must now await regulatory approval. Shelffo anticipates the deal will close late Q2.
SOUND STRATEGY: Advance has no plans to meddle with Ironman’s formula. "We only buy businesses where we really appreciate and attempt to support the existing management team," Shelffo said. "So we are very excited and supportive of what Andrew and his team have been doing and plan to do." Ironman’s next gambit is to reach athletes in their homes. Next week, Ironman will launch a new digital platform, as well as the Ironman Virtual Racing Series, which will enable athletes to train and compete from anywhere. According to Ironman, active users will be rewarded with "merchandise, discounts and special benefits," and race finishers will receive a package, including medal and t-shirt. Race weekends also will feature one-on-one competitions between pro athletes that will be streamed on Facebook Watch.
