Fenix Outdoor's Capital U-turn: A Strategic Shift for Growth

In a surprising turn of events, Fenix Outdoor International AG (Fenix Outdoor) has revoked its resolution to reduce capital, announced on March 4, 2025. The company had initially planned to reduce its share capital by CHF 112,898.00, from CHF 13,460,000.00 to CHF 13,347,102.00, by annulling 112,898 registered B-shares held as treasury shares. However, the Board of Directors has now decided to use these shares for the acquisition of Devold, a Norwegian outdoor clothing company, as announced simultaneously with the press release.



This strategic shift aligns with Fenix Outdoor's long-term growth strategy, as the acquisition of Devold is expected to strengthen the company's position in the outdoor segment and expand its product offerings. The acquisition is also in line with the company's strategy to focus on core outdoor brands and to grow through strategic acquisitions. By revoking the capital reduction and using the shares for the acquisition, Fenix Outdoor is demonstrating its commitment to pursuing growth opportunities and investing in its future.

The acquisition of Devold is expected to contribute to Fenix Outdoor's overall business strategy and expected financial performance in several ways:

1. Expansion of Product Portfolio: By acquiring Devold, Fenix Outdoor gains access to a new product line, which includes high-quality wool clothing and accessories. This expansion allows Fenix Outdoor to cater to a broader range of customers and potentially increase market share in the outdoor clothing and equipment sector.
2. Strengthening of Brand Portfolio: Devold is a well-established brand in the outdoor clothing industry, with a strong reputation for quality and durability. The acquisition of Devold allows Fenix Outdoor to strengthen its brand portfolio and potentially leverage the Devold brand to enhance the appeal of its existing brands.
3. Potential Synergies: The acquisition of Devold may lead to synergies in areas such as supply chain, marketing, and distribution. These synergies could result in cost savings and improved operational efficiency, contributing to Fenix Outdoor's overall financial performance.
4. Alignment with Strategic Focus: Fenix Outdoor's strategic focus is on growing its outdoor segment and expanding its presence in the European market. The acquisition of Devold, a Norwegian company with a strong presence in the European market, aligns with this strategic focus and supports Fenix Outdoor's long-term growth objectives.
5. Potential Revenue and Profit Growth: The acquisition of Devold could contribute to Fenix Outdoor's revenue and profit growth by adding new revenue streams and potentially increasing overall profitability through synergies and cost savings.

In conclusion, Fenix Outdoor's revocation of the capital reduction resolution and the subsequent acquisition of Devold demonstrate the company's commitment to pursuing growth opportunities and investing in its future. The acquisition is expected to contribute to Fenix Outdoor's overall business strategy and financial performance by expanding its product portfolio, strengthening its brand portfolio, creating potential synergies, aligning with its strategic focus, and potentially driving revenue and profit growth. Investors should closely monitor the progress of this acquisition and its impact on Fenix Outdoor's shareholder value.