ACCELL GROUP TO ACQUIRE SEATTLE BIKE SUPPLY
http://www.istv.com/news/articles/200/1/ACCELL-GROUP-TO-ACQUIRE-SEATTLE-BIKE-SUPPLY
Jack McDaniel
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By Jack McDaniel
Published on 02/9/2006
Accell Group of the Netherlands has signed a letter of intent to purchase Seattle Bike Supply...
FEBRUARY 09, 2006 -- HEERENVEEN, The Netherlands
Accell Group of the Netherlands has signed a letter of intent to purchase Seattle Bike Supply (SBS). Accell will finance the acquisition from its own resources and expects to complete the deal within the next 30 days.
Accell Group is the European market leader for bicycles, with 2004 turnover of 341 million euros ($408 million). Its acquisition of SBS gives it a built-in U.S. distribution network for its brands, which include Batavus, Hercules, Koga-Miyata, Lapierre, Loekie, Mercier, Sparta, Staiger, Tunturi and Winora.
“The North American bicycle market is interesting to us because after Europe it is the second largest market where high-quality bicycles are sold on a large scale,” said Rene Takens, chairman of the board of Accell Group.
“The acquisition of SBS, including the biggest BMX brand in the world, Redline, not only means we acquire an interesting position, albeit somewhat modest at the moment, in the North American bicycle market, we also obtain a top-five position in the market for bicycle parts and accessories,” he added.
SBS supplies the majority of the specialty bicycle stores in the United States and Canada with bicycles, parts and accessories. It also has a number of its own brands, including Redline, Torker cruisers, Pryme accessories and Potenza accessories, which have so far seen very little distribution in Europe. It has annual sales of around $36 million.
The deal offers SBS means to distribute its house brands in Europe. It also gives it access to the expertise of Accell Group in the trekking bicycle segment, though SBS president Chuck Hooper said it was too early to know which Accell brands might be ripe for distribution in the U.S. market.
“The synergies between the two companies are enormous. We bring things to the table that they don’t have and vice versa,” Hooper said.
“This is just kind of one of those timely things that seemed to come together simultaneously. We were looking to expand our operations with Redline distribution in the European market. They wanted to expand into North America. One thing led to another and this was a near perfect fit,” he added.
gOrk
Accell Group is the European market leader for bicycles, with 2004 turnover of 341 million euros ($408 million). Its acquisition of SBS gives it a built-in U.S. distribution network for its brands, which include Batavus, Hercules, Koga-Miyata, Lapierre, Loekie, Mercier, Sparta, Staiger, Tunturi and Winora.
“The North American bicycle market is interesting to us because after Europe it is the second largest market where high-quality bicycles are sold on a large scale,” said Rene Takens, chairman of the board of Accell Group.
“The acquisition of SBS, including the biggest BMX brand in the world, Redline, not only means we acquire an interesting position, albeit somewhat modest at the moment, in the North American bicycle market, we also obtain a top-five position in the market for bicycle parts and accessories,” he added.
SBS supplies the majority of the specialty bicycle stores in the United States and Canada with bicycles, parts and accessories. It also has a number of its own brands, including Redline, Torker cruisers, Pryme accessories and Potenza accessories, which have so far seen very little distribution in Europe. It has annual sales of around $36 million.
The deal offers SBS means to distribute its house brands in Europe. It also gives it access to the expertise of Accell Group in the trekking bicycle segment, though SBS president Chuck Hooper said it was too early to know which Accell brands might be ripe for distribution in the U.S. market.
“The synergies between the two companies are enormous. We bring things to the table that they don’t have and vice versa,” Hooper said.
“This is just kind of one of those timely things that seemed to come together simultaneously. We were looking to expand our operations with Redline distribution in the European market. They wanted to expand into North America. One thing led to another and this was a near perfect fit,” he added.
gOrk