The bicycle industry continues to boom and is therefore increasingly targeted by investors. Dutch Accell Group N.V. and a consortium led by U.S. financial investor KKR (Kohlberg Kravis Roberts), which includes Accell’s major shareholder Teslin, announced today that a conditional agreement has been reached for a recommended public offer by the bidder for all issued and outstanding ordinary shares of Accell Group at a price of €58.00 in cash per share (cum dividend), representing a total consideration of approximately €1.56 billion. 

Following the announcement, the value of Accell’s shares shot up by more than 24 percent on the Amsterdam stock exchange, boosting its market capitalization close to the proposed acquisition price. The price being offered represents a premium of 26 percent over the closing price on Jan. 21, a premium of 42 percent over the last three months volume-weighted average price per share, and a premium of 21 percent versus the company’s all-time stock price of €48.00.

Accell Group’s two largest shareholders, Teslin and Hoogh Blarick, support the transaction. Directly and indirectly, they hold shares of around 12 percent and 7.5 percent in the group. The company, which has been heavily restructured in recent years, most recently reported a 17 percent increase in annual sales to €1.3 billion for 2020. The operating profit (Ebit) rose by 25 percent to €75 million.

Accell Group includes the bike brands Ghost, Haibike, Babboe, Batavus, Lapierre and Winora, among others. The company most recently reported a 17 percent increase in annual sales to €1.3 billion for 2020. Profit (Ebit) rose at the same time by 25 percent to €75 million.

KKR is a leading global investment firm based in New York City with a long track record of investing in the consumer sector, including in mobility, with investments including Lyft, Gojek, Zwift, Boots and Wella, among many others. KKR is also the largest private equity investor in digital and technology in Europe and has a strong presence in the Netherlands with recent investments in Roompot, Open Dutch Fiber, QPark, Upfield, Landal and Exact. Tim Franks, partner and head of EMEA consumer at KKR, commented: “Accell Group’s transport and mobility solutions have been a thematic investment focus for KKR for some time, and we believe that the bicycle sector and e-bikes, in particular, will play an increasingly important role in dealing with some of the major challenges the world is facing today, whether it concerns climate change, urban mobility and connected transport or personal health. The operating environment for biking is increasingly demanding and complex from a consumer experience, supply chain, and digital capability perspective. As a global investor, we will deploy our resources to support Accell Group in realizing its full potential as a global industry leader and sustainable innovator.”

In 2017, Accell had rejected a takeover bid from Dutch family-owned Pon Holdings. Last October, Pon bought the bicycle subsidiary of Canadian conglomerate Dorel Industries Inc.