Accell Group N.V. is in talks on the acquisition
of all outstanding shares in Seattle Bike Supply Inc. SBS is based in Seattle, and has an annual turnover of around $36 million. SBS is active in the middle and higher segments of the market for sports bicycles, bicycle parts and accessories. The company has a strong distribution network, which supplies the majority of the specialist bicycle stores in the United States and Canada.
With its Redline brand, SBS is the world market leader in the BMX segment, a key segment in North America and Australia. Accell expects to complete the acquisition in the near future and will finance it from its own resources.
After Europe, North America is the second most important market for high-grade bicycles, bicycle
parts and accessories. Accell Group is currently active on a limited scale in the North American
bicycle market via a number of brands. SBS s extensive distribution network is an excellent
complement to this activity and also offers opportunities in the field of fitness equipment. SBS also
has a number of strong own brands, including Redline, Torker (cruisers), Pryme (accessories) and
Potenza (accessories), which have so far seen very little distribution in Europe. In its turn, SBS will be
able to utilise the expertise of Accell Group in the field of trekking bicycles, a market segment which
is still up and coming in North America.
René Takens, Chairman of the Board of Accell Group said, “The North American bicycle market is interesting to us because after Europe it is the second largest
market where high-quality bicycles are sold on a large scale. Moreover, there is a clear trend in North
America towards healthier living and more exercise, and the bicycle plays a key role in this. National
and state authorities in the United States have launched campaigns to encourage Americans to cycle
more. Meanwhile, more new bikes than new cars are sold annually in the United States. The
acquisition of SBS, including the biggest BMX brand in the world, Redline, not only means we
acquire an interesting position, albeit somewhat modest at the moment, in the North American bicycle
market, we also obtain a top-five position in the market for bicycle parts and accessories.”
SBS has around 90 employees and an annual turnover of around $36 million.
SBS has been contracting out the production of its bicycles to Asian partners for years now. SBS
supplies its market from four logistical centers spread strategically across the US, which deliver
exclusively to specialist bicycle shops.
Since its foundation in 1974, SBS has gained a reputation as a very reliable and respected supplier of
sports bicycles, and its BMX brand Redline has become one of the most popular brands in the active
sport segment. SBS has its own racing teams, including Bubba Harris, the 2005 BMX racing World
Champion. BMX will become an Olympic sport for the first time in Peking in 2008.
Accell Group is a European group of companies active in the development and marketing of
innovative and high-quality bicycles, bicycle accessories and fitness equipment. Accell Group s
brands have a recognisable added value for the consumer, with a long tradition in their respective
markets often playing an important role. With names such as Batavus, Hercules, Koga-Miyata,
Lapierre, Loekie, Mercier, Sparta, Staiger, Tunturi and Winora, the companies have strong positions in
the middle and higher segments of the market. Sales to consumers are realized primarily through
specialist bicycle shops.
Accell Group has production locations in the Netherlands, Germany, Finland, France and Hungary.
Our key markets are the Netherlands (50% of turnover), Germany (23%) and France (12%). Other
European countries, including Belgium, Denmark, Finland, Austria, the United Kingdom and
Switzerland, account for 15% of turnover.
Accell Group is the European market leader in the bicycle market and operates at the top of the market
for home use fitness equipment. Turnover in 2004 was 341 million and net profit came in at
13 million. Accell Group shares are traded on Eurolist by Euronext Amsterdam.