LONDON, UK (BRAIN) Thursday April 26 2012 6:15 AM MT—Accell Group NV has completed its purchase of Raleigh Cycle Ltd., one of the oldest and largest bike companies in the world, for about $80 million.
In a statement, the Raleigh board said, "There is a very complementary fit between the two businesses, with very little geographical overlap; in particular Raleigh will immediately give Accell Group a major presence in the U.K., the USA and Canada [where Raleigh operates its own production facility]. The two businesses also share the same management values and a similar decentralised management structure."
Raleigh Cycle Ltd. contains five business units: Raleigh US, Raleigh UK, Raleigh Canada, Raleigh DTC (an Asian sourcing company) and Raleigh Licensing. The company has about 430 employees and annual revenue of about $265 million. Raleigh sold approximately 850,000 bikes last year.
The companies announced just three weeks ago that they were in talks. Raleigh reportedly had been talking to other potential suitors, including Pon Holdings.
The company said Raleigh’s management team intends to stay on after the acquisition; CEO Alan Finden-Crofts will stay at least another six months.
Accell's statement on the purchase (pdf)
Raleigh's statement (pdf)
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“As talks progressed with the various interested parties earlier this year, Accell Group emerged as the clear preferred buyer for the business, given the highly complementary product range and geographic presence of the two businesses," Finden-Crofts said.
"In Raleigh, Accell Group is acquiring a true global brand with 125 years of heritage and distribution into over 140 countries worldwide and I am entirely confident that Raleigh has found the ideal buyer to support the employees, customers, suppliers and the future growth of the business.”
Raleigh America managing director Steve Meineke said the acquisition is good news for its dealers. “[The acquisition] will further enhance the advanced product offerings we have in place for utility cyclists, cause riders and support our successful local dealer and event programs," Meineke said.
