7. Solution Criteria Allows for organic expansion through international growth Maintains specialization in niche market Establishes Sustainable and achievable growth … We will develop a fully integrated growth strategy that will continue to grow the Under Armour brand by capturing more share in the athletic apparel market through enhanced product assortments and international expansion . Three Criteria for Success Conclusion Growth Strategy Proposal Opportunities Industry Analysis
8. Several options have been analyzed but is imperative to have a focused strategy Penetrate overall apparel market with non-athletic products to replace cotton Gain more control of the suppliers by purchasing a stake in the largest ones Find alternative communication mediums Increase product line Expand Current Business to increase market share Time Frame Pursue ? Acquire Columbia Sportswear Conclusion Growth Strategy Proposal Opportunities Industry Analysis Long Term Short Term
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10. Why acquisition with Columbia makes financial sense 2007E EPS Accretion / (Dilution) % Source: Equity research reports; Yahoo! Finance Note: Assumes 7.5% cost of debt with no synergies. COLM’s stock price as of 11/15/2007 was $51.72 % Stock Conclusion Growth Strategy Proposal Opportunities Industry Analysis Strong Stock Price Gives UA Acquisition Power
11. Acquisition Diversifies Under Armour’s Geographic Footprint Under Armour Columbia Sportswear Pro Forma U.S. 94% Other International 2% Canada 4% Source: UA and COLM 2006 10-K; Hoovers research report U.S. 58% Europe 15% Other International 17% Canada 9% U.S. 68% Europe 12% Other International 13% Canada 8% Conclusion Growth Strategy Proposal Opportunities Industry Analysis Product Segments (as % of 2006 Sales)
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15. Under Armour can benefit from Columbia’s Distribution Channels Japan S. Korea France Spain Canada Germany Russia Columbia’s 48% revenues come from outside U.S. Distribution Centers/ Direct Outlets Sales Offices Retail Channels Conclusion Growth Strategy Proposal Opportunities Industry Analysis
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18. Appendix-Merger Analysis Source: Equity research reports; Yahoo! Finance Note: COLM’s stock price as of 11/15/2007 was $51.72 Short Form Merger Analysis
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