A consortium led by buyout firm KKR has agreed on a takeover of Accell Group that values the maker of bicycle brands such as Sparta and Batavus at 1.56 billion euros ($1.77 billion), they said in a joint statement on Monday.
The cash offer of 58 euros per share in cash represents a premium of 26% over Accell's closing price on January 21 and a premium of 42% over its three-month volume-weighted average price, the statement said.
"The Consortium is committed to further developing the Netherlands as the global capital of cycling by building on the company’s leading position in the European e-bike market and continuing to grow its strong heritage brands," KKR partner Daan Knottenbelt said in a statement.
Accell chairman Rob ter Haar said in a statement the board unanimously supports the deal as offering "compelling and immediate value for shareholders" and would help the company strategically as well.
Accell's two largest shareholders, Teslin and Hoogh Blarick, said they would support the transaction, with 10.8% and 7.5% of shares, respectively.
The company's current managers will continue to run the company.
The bike industry was one of the winners from the coronavirus pandemic, with Accell reporting a 17% rise in sales to 1.3 billion euros in 2020, and strong growth in e-bike sales as an alternative to public transport.
Recent years have been turbulent for Accell, which rejected a different buyout offer for 33 euros from Pon Holdings back in 2017, which had aimed at merging the company with Pon-owned brands including Gazelle. ($1 = 0.8834 euros)SOURCE: Bloomberg
IMAGE SOURCE: Financial Times