Accell Group N.V. disclosed it acquired a 5.7 percent stake in newly public Derby Cycle A.G. a day after its German rival raised its revenue and earnings guidance.
Derby Cycle AG, which went public in February, said rising global demand for electric bicycles and sports cycles, a strong consumer climate, and the early onset of summer temperatures in 2011 prompted it to raise revenue guidance for the second quarter ending March 31 by 45.6 percent to $104.7 million.
“On the basis of the successful second quarter and the orders already on hand from specialist cycle retailers and wholesalers, the company's management board raised its revenue forecast for the financial year that ends on Sept. 30, 2011 from at least €200 million to at least €220 million (previous year: €173.2 million),” Derby Cycle said in a release. “In terms of EBIT margin, Derby Cycle continues to assume a year-on-year improvement to between 7% and 8% (previous year: 7.0%).”
A day after the announcement, Accell Group N.V., which is the Netherland’s largest bike builder, disclosed it had acquired its stake in Derby through a subsidiary – In2Cycling B.V. Accell said it acquired the shares on the Frankfurt stock exchange and there have been no discussions between the two companies about potential further interest. Accell reported $765.8 million in sales in 2010.
In January, 2010, Accell Group acquired one of its German distributors, in part to bolster its sales of e-bikes there. The German Cycle Association (ZIV) recently estimated e-bikes could make up between 10 and 15 percent of the overall cycle market in Germany, or 400,000 to 600,000 bikes a year.
Both Derby and Accell build bikes in Europe and sell through specialty bicycle dealers. In 2010, Accell derived 39 percent of its revenue from the Netherlands, 25 percent from Germany and 9 percent from France, while Derby derived 72.6 percent of revenues from Germany and 27.4 percent abroad.
