Considered one of Europe’s largest bicycle producers and proprietor of the Raleigh model has agreed a €1.56bn takeover by a consortium led by US non-public fairness group KKR as confidence of an enduring growth in biking grows.
The deal values Netherlands-based Accell Group’s fairness at €58 per share, a premium of 26 per cent over Friday’s closing worth, triggering a 24 per cent surge within the firm’s inventory to €57.20 by mid-morning on Monday.
The group’s different well-known manufacturers embody Haibike, Ghost, Koga, Sparta and Batavus.
Accell could be higher positioned beneath non-public possession for long-term progress as provide chain troubles disrupt the business amid a pandemic enhance to demand for bicycles, Accell and the KKR consortium stated in a joint assertion.
“The consortium is dedicated to additional creating the Netherlands as the worldwide capital of biking by constructing on the corporate’s main place within the European e-bike market and persevering with to develop its robust heritage manufacturers,” stated Daan Knottenbelt, head of Benelux at KKR.
Together with web debt, which stood at €79.2m in keeping with the corporate’s most up-to-date annual report, the deal offers Accell an enterprise worth of about €1.64bn. This values the corporate at about 22 instances the €74.7m it made in earnings earlier than curiosity and tax in 2020.
The deal provides to KKR’s portfolio of investments within the shopper sector together with ride-sharing app Lyft and Indonesian app Gojek, which gives a variety of providers together with transport and funds, however it marks the non-public agency’s first main foray into the bicycle sector.
The acquisition is the most recent within the bicycle manufacturing sector after Adidas’s largest shareholder Groupe Bruxelles Lambert took a 60 per cent stake in high-end model Canyon Bicycles in December, valuing the premium bicycle model at €800m.
In 2017, Accell fended off curiosity from Dutch rival Pon Holdings, deeming its €845m preliminary bid and marginally increased subsequent provide as too low. The group slimmed down and narrowed its focus to Europe by promoting its lossmaking US enterprise to personal fairness group Regent in 2019.
Underneath the deal, Accell’s largest shareholder Teslin will contribute a majority of its shares for a 12 per cent oblique fairness stake within the bidding consortium and tender the rest of its shareholding within the Dutch group.
Accell’s chair Rob ter Haar stated the deal would assist the enterprise develop in an “accelerated timeframe” and “strengthen its place as one of many world’s main bicycle market gamers”.
Accell’s gross sales jumped 17 per cent to €1.3bn and it bought about 900,000 bicycles in 2020, underlining how the business was one of many massive pandemic winners as coronavirus spurred travellers to keep away from public transport.
Lots of Accell’s manufacturers have been targeted on rising within the increased worth e-bike market, significantly for e-cargo bikes used to ship items.
Nevertheless, the business’s newfound success has been derailed by world provide chain issues with lead instances from order to supply for sure elements resembling seats and forks extending from the pre-pandemic norm of some months to past a yr.
The consortium stated it might assist Accell cope with the availability chain and inflationary pressures disrupting the business.