Tackle giant owner sells shares in arch rival

The owner of Pure Fishing has reduced its stake in rival tackle giant Rapala VMC Corporation, signalling what analysts believe could be a potential strategic shift in its priorities.

Private equity group, Sycamore Partners, which acquired Pure Fishing for $1.3 billion in 2019, has reduced its stake in the Finnish group from 14.09% to 9.66%. This takes its interest in the company to below 10% and transforms it from an active investor to a passive observer.

Industry experts believe that it could signal a shift in focus away from the fishing by Sycamore and present it with an opportunity to ‘recalibrate’ its portfolio priorities or be a reassessment of Rapala’s growth potential.

This shift is said to allow operational autonomy for Rapala, allowing its management to pursue strategies without the constraints of a controlling shareholder.

Sycamore has been in the headlines recently following its protracted acquisition of Wallgreens Boots Alliance, an integrated healthcare, pharmacy and retail leader that has approximately 12,500 locations across the US, Europe and Latin America.