Thule Group has signed an agreement to acquire Australia-based Quad Lock, which Thule described as “the global market leader in performance phone mount solutions, giving cyclists, motorcyclists and other adventurers access to their mobile phones while being active.”
Thule Group and Quadrant Private Equity, along with two founders and other minority shareholders of Key TopCo Pty, Ltd. (Quad Lock), signed a binding, conditional agreement under which Thule Group will acquire 100 percent of the shares in Quad Lock.
Quad Lock reports in Australian dollars (A$). Thule trades in Swedish krona (SEK).
The purchase price amounts to A$500 million, or approximately SEK 3.6 billion, on a cash and debt-free basis and corresponds to a multiple of 10x Quad Lock’s adjusted EBITDA for the last twelve months.
The acquisition is expected to be accretive to Thule’s earnings per share, EBIT margin and sales growth.
Following the transaction’s closing, the pro forma net debt ratio (net debt/EBITDA) is expected to be around 2.0 on December 31, 2024.
Quad Lock reported sales of SEK 1.4 billion for the trailing 12-month period ended August 31, with a 25 percent EBITDA margin, and is said to “fit well with Thule’s brand and strategy of developing market-leading positions in attractive niches.”
Quad Lock revenues are “geographically diversified,” with roughly 35 percent in North America, 30 percent in the EU, 20 percent in Australia and New Zealand, and 15 percent in the Rest of the World. Quad Lock’s sales correspond to 13 percent of Thule Group’s pro forma sales for the twelve months ended August 31, 2024.
“We are taking Thule to the next level, and we are doing it by building on our strengths. Our profitable growth is driven by our ability to develop market-leading positions in attractive niches. We have proven this in categories where we have been present for a long time, such as rooftop boxes and in categories we have acquired, such as multi-sport and bike trailers,” said Mattias Ankarberg, president and CEO of Thule Group.
“Quad Lock is a global market leader in its niche and, like Thule, has a passion for creating the best products for active adventurers, with a strong focus on quality and innovation. Welcoming Quad Lock’s talented employees to the Thule family strengthens us in several areas and is a valuable step towards our financial targets for 2030: sales of SEK 20 billion and an EBIT margin of at least 20 percent.”
Quad Lock started in 2011 when two Australian founders invented a secure and user-friendly solution for mounting mobile phones on their mountain bikes. The product range has evolved and, today, Quad Lock is reportedly the “global market leader in performance phone mounts” with the broadest range of solutions for biking, motorcycling and off-road car enthusiasts.
Quad Lock has reported sales in roughly 100 countries, of which about 75 percent are via e-commerce direct-to-consumer. The company’s headquarters is in Melbourne, Australia.
“We are excited to become part of the Thule Group,” said Andrew Poole, CEO of Quad Lock. “It’s striking how similar our brands and cultures are. Like Thule, we focus on high-quality products that can withstand harsh conditions and are appreciated by customers who love adventure. This market is growing rapidly, and we look forward to tackling the many growth opportunities together. As a management team, we also appreciate becoming Thule shareholders as part of this transaction and getting the opportunity to take part in the future value creation of our combined companies.”
Thule Group expects the acquisition of Quad Lock to strengthen its position in the Asia-Pacific region, increasing its share of Thule sales from ~5 percent to ~10 percent and DTC sales to increase from ~7 percent to ~15 percent. Thule also expects to gain access to a customer base of motorcycle enthusiasts, Quad Lock’s largest segment, and the company’s expertise in electronics, including wireless charging of mobile phones on motorcycles.
Images courtesy Quad Lock/Key TopCo Pty Ltd.
