Wanda Sports considering US$1 billion sale of Ironman Triathlon business
- Wanda is working with an adviser and has held discussions with some private-equity buyers on the potential sale
- The Chinese group bought the business in 2015 for US$650 million, rejected overtures from an interested buyer last year
Wanda Sports Group, the China-based sports marketing and event promoter, is considering selling the Ironman triathlon business it bought in 2015, according to people familiar with the matter.
The company, part of Chinese billionaire Wang Jianlin’s conglomerate, is working with an adviser and has held discussions with some private-equity buyers that expressed interest in the business, said the people, who asked not to be identified as the information is private. Wanda Sports is seeking about US$1 billion for the business, one of the people said.
Wanda Sports last year declined to enter talks with The Professional Triathletes Organization, which was interested in acquiring the Ironman business. The organisation said at the time that excessive leverage has hampered Wanda Sports’s ability to invest in Ironman operations.
Wanda Sports shares have dropped about 63 per cent in New York trading since their July 2019 debut, paring the company’s market value to about US$409 million. With total debt at about US$968 million, the company has an enterprise value of about US$1.2 billion, according to data compiled by Bloomberg.
Deliberations are ongoing and Wanda Sports could decide against proceeding with a sale, the people said. A representative for Wanda Sports declined to comment.
The Ironman Triathlon, organised by Wanda’s World Triathlon Corp., consists of a 3.9-km (2.4-mile) swim, a 180-km bicycle ride and a 42-km marathon run in one day. The series includes more than 170 races annually across six continents, according to its website.
Dalian Wanda Group Co., the China-based real estate-to-entertainment group led by Wang, bought the business five years ago for US$650 million. Ironman then became part of Wanda Sports, which was listed in the US last year.
