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Few people know that the golf brand Titleist and the fashion brand FILA are actually controlled by the Korean company, Misto Holdings (081660 KS — US$1.4 billion).
It was created by superstar Korean entrepreneur Gene Yoon back in 1991. Initially, it served as FILA's distributor in South Korea. But after FILA encountered financial difficulties in the mid-2000s, Gene teamed up with a private equity firm to take the entire global FILA business private. And he's been running it ever since.
In 2011, Gene used the same playbook to acquire a stake in the US golf equipment company Acushnet – the owner of the famous Titleist brand.
In the late 2010s, the FILA brand had a resurgence, as consumers took a liking to retro-style shoes. However, the fad proved short-lived, and FILA lost market share to more fashion-forward brands such as Hoka, On, and ASICS.
After the share price came down, Gene took advantage of the low price to increase the family's stake from 20.1% to 40.5%. And the family is now firmly in control of a business that owns 50.4% stake in Acushnet, along with a 100% stake in FILA's global, ex-China business.
Ihina, Misto runs its business through a 15%-owned joint venture called "Full Prospect", together with local partner Anta Sports. In addition, Misto receives a 3% royalty fee on any revenue generated in China. This set-up has been enormously successful, with FILA now being the third-most-popular foreign sportswear brand in Mainland China.
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