KKR makes EUR 1.5bn bid for Accell

Rachel Lewis
24 January 2022

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Accell Group, one of Europe's largest bicycle manufacturers, has agreed to a EUR 1.5bn takeover offer from KKR and minority shareholder Teslin.

The consortium, recommended by Accell's board, has made the offer at EUR 58 per share, valuing Accell at EUR 1.56bn.

Accell's share price jumped to EUR 57.20 on opening, suggesting that the market is not expecting another bid.

The EUR 58 all-cash offer per share is a 26% premium on the 21 January closing price; a 42% premium on the last three-month average; and a 21% premium on its all-time high share price.

KKR made the bid through Sprint BidCo. Two of Accell's largest shareholders, Teslin and Hoogh Blarick – which own 10.8% and 7.5% respectively – will support the deal. Teslin will own about 12% of the group post-close.

Accell's management, including CEO Ton Anbeek and CFO Ruben Baldew, will continue to lead the company.

The offer is expected to complete in late Q2 or early Q3 2022. It will be funded through a mix of debt and equity, with debt expected to constitute less than 38% of the total.

KKR says it fully supports Accell's current business strategy, but adds that this investment can accelerate the execution. The offer says the group will not be broken up nor subject to any substantial divestments. Areas of focus include innovation and brand development, supply chain management and distribution, international expansion, acquisitions, and continued ESG integration.

Daan Knottenbelt, KKR's head of Benelux, said in a statement that the consortium would build on Accell's e-bikes platform, while growing its heritage brands.

KKR said Accell's business and operations will be maintained in their current form, and the group's headquarters will remain in Heerenveen, the Netherlands. Its workforce will not be reduced in size.

Company
For 2022, the group is aiming for EUR 1.4bn-1.5bn in turnover, with an 8% EBIT margin.

In 2020 (the last full-year accounts available), Accell grew sales 17% to EUR 1.3bn and EBIT 24% to EUR 75m, which it said was offset by inefficiencies in supply chain.

Its sales are heavily weighted towards Europe: split 43% in central Europe, 25% in Benelux, 29% in the rest of Europe and the remainder in the rest of world.

In 2019 it sold its loss-making US business to Regent.

The number of traditional bikes it sold in 2020 fell 17% to 425,000, while e-bikes rose 9% to 472,000.

Accell has been listed since 1998. In 2017 it rejected a takeover bid from Pon Holdings at EUR 33 a share.