On July 16, USWE Sports AB, founded in Skåne, Sweden, in 2007, signed an agreement to acquire VOID Cycling, founded in Gothenburg in 2014, from Tenson BV and Color Group BV. Both USWE and VOID are strong in e-commerce and have each established a global presence.
In early 2021, the two companies launched a collaboration in which both parties had their creative teams work together to design a co-lab collection of backpacks and cycling apparel for the MTB market. During the project, it became clear to both sides that a merger would bring significant benefits. The companies’ markets overlap in a way that provides an expanded base for further expansion. The collaboration project will continue until the acquisition date, which is scheduled for Sept. 20, 2021. The USWE + VOID Co-Lab collection will be launched in spring 2022.
The transaction is priced at SEK 10 million (€975,863-$1.2m) with a possible earn-out of maximum SEK 4 million (€390,345-$460,818) based on the result of the pre-sale for the spring/summer 2022 season collection. In the current year, VOID Cycling is expected to generate sales of approximately SEK 8 million (€780,691-$921,637). USWE believes that VOID Cycling has good prospects for further growth, in line with USWE’s target to grow by more than 40 percent annually.
The acquisition follows USWE’s fundamental strategy of establishing a strong brand presence with hydration packs and then expanding the product range for the established target group, both through e-commerce and international distribution channels. USWE went public on the Nasdaq First North Growth Market on June 24 of this year.
Tenson, one of the iconic Scandinavian outdoor brands founded in 1951, acquired VOID 2020 from WearColour, a Swedish brand of anoraks, ski jackets and pants that filed for bankruptcy in Feb. 2020 and was then renamed to Colourwear, its original brand name. From that point on, Tenson partnered with the remaining Colourwear team and former Salming Sports executives to restructure the VOID brand.