American fund wants to acquire Dutch bicycle giant

The American investment fund KKR has offered 1.6 billion euros for Accell Group, the Dutch bicycle manufacturer which owns well-known brands such as Batavus, Koga, Raleigh and Sparta.

Substantial premium

KKR is offering 58 euros per share, a premium of 26 per cent compared to Friday’s closing price. According to Dutch news channel RTL Nieuws, the bid has a high probability of succeeding: both Accell’s board of management and the major shareholders of the bicycle manufacturer support the bid.

KKR and Accell want to delist the company if the deal goes through because it will be “better positioned to make long-term investments.” Even post-acquisition, Accell’s headquarters would remain in Heerenveen, the Netherlands. Both parties assure that nothing will change for the employees.

Wave of consolidations

Accell attracted the interest of its major rival Pon in 2017, whose portfolio includes Gazelle and Union. However, the Frisians rejected the offer because it was too low. In the meantime, Pon did grow into the world’s largest bicycle manufacturer after it acquired Dorel Sports (which includes Cannondale) from the United States in the autumn of 2021.

The fact that a big player like KKR is venturing into the bicycle market does not come as a surprise. According to Belgian newspaper De Standaard, which based itself on figures from research firm Facts and Factors, this market will grow by over 14 per cent each year in the coming years. Cycling has been gaining popularity for quite some time, thanks to the rise of e-bikes and the general trend towards sustainability and health. The Covid crisis provided the industry with an additional boost.