Accell Group N.V. has agreed to acquire Comet S.L. Comet, a Spanish bicycle parts and accessories company that has an extensive distribution network in Spain and significant market positions in France and Portugal.
“Comet is our first acquisition in Spain, a market where we have been looking for some time for a good partner to extend Accell Group’s European distribution network for parts and accessories,” said René Takens, CEO of Accell Group. “Comet is a major player, with the number one position in the Spanish market and is therefore an excellent fit with our acquisition strategy. The acquisition offers good synergy potential in terms of brand portfolio, sales systems and internal logistics. There are sufficient signs that the Spanish economy is starting to recover, which is resulting in a growing demand for bicycles, and consequently also for parts and accessories.”
The European market for bicycle parts and accessories is a growth market with a clear trend towards consolidation. Suppliers appreciate the added value of being able to do business with one player to organize all their distribution in the region’s main sales markets. The Accell Group companies already have strong positions in the Benelux, Germany, France, Italy, Finland, Sweden, the United Kingdom, Switzerland, Austria and Turkey. The acquisition of Comet gives Accell Group the number one position in the Spanish market and adds a significant market position in Portugal. It also significantly boosts Accell Group’s existing market position in France.
Comet has exclusive distribution agreements with various major brands and sells bicycle parts and accessories solely to the specialist retail trade in Spain, France and Portugal. Comet does not sell bicycles. The current management will continue to manage Comet until successors can be found. Comet employs 60 people across its two operating companies and generates annual turnover of around $35 million.
Accell Group will invest in sales systems and internal logistics to support Comet’s growth. Furthermore synergy benefits will explored in the short-term through the combination of Comet’s sales operations with Accell's Spanish sales organizations, which comprise Lapierre, Ghost and Haibike bicycles and the Wiener Bike Parts.
Accell Group will finance the acquisition of Comet via existing financing facilities. The Comet shares will be acquired at a price based on a valuation of approximately seven times Comet’s normalized operating earnings, which have averaged 6 percent, or just above those reported by Accell. Accell Group expects to complete the acquisition in the course of the third quarter. The acquisition will make an immediate contribution to Accell Group’s earnings per share. No additional financial details will be disclosed.
