HEERENVEEN, Netherlands (BRAIN) — After leading a group that purchased Accell Group in 2022 for approximately $1.77 billion, US-based investment giant KKR has stepped away from the troubled Dutch bicycle conglomerate, as a new ownership group led by its lenders takes over.
Accell is the owner of the bike and e-bike brands Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe, and Carqon, and the P&A brand XLC. This year Accell divested two of its brands, selling its titanium frame brand, Van Nicholas, to the Italian cargo brand Velo-ce, and its Nishiki bike brand to Turkey’s Kron Bicycle (In the U.S., Dick’s Sporting Goods continues to own rights to the Nishiki bike brand).
On Wednesday, Accell and KKR each announced that Accell had secured new investment, that its major lenders were part of its new ownership group, and that the lenders had agreed to a plan they said reduces Accell’s debt and puts it on more stable financial footing.
Without explicitly saying so, it appears that KKR essentially handed its equity in Accell to the major lenders, and statements from both companies refer to the Accell/KKR relationship in the past tense.
“After two years of hard work, we are well advanced in our plans to fundamentally transform the business,” said Accell CEO Jonas Nilsson in its statement. “We’d like to thank KKR for its significant support and commitment as a responsible shareholder throughout its ownership. The business is in a much stronger position as a result of shareholder support, and this new agreement is a major milestone in achieving the exciting potential of our portfolio of iconic brands.”
KKR said, "During its ownership, KKR supported a wide-ranging program of operational and organizational measures, consistent with KKR’s role as a long-term and responsible investor. This included continuing to support growth initiatives and new product launches, while strengthening leadership, improving liquidity and resilience, and centralizing operations as part of the One Accell strategy. These actions were taken to ensure continuity of operations, support Accell’s customers and partners, and position the business for a return to sustainable profitability as market conditions normalize.
“As a result of the severity and duration of the industry downturn, Accell’s capital structure evolved and lenders assumed greater economic responsibility for the business. With the company now stabilised and the season soon to pick up, Accell will transition to a new ownership structure in which lenders, working closely with management, are positioned to support the company’s ongoing recovery and execution of its business plan.”
