As part of its strategic review of the North American business operations which was announced in December 2018, Accell Group N.V. reached an agreement on the sale of its Canadian brand registrations of Raleigh, Diamondback, Redline and IZIP to Canadian Tire Corporation Ltd. for a cash consideration of U.S. $16 million.
Accell Group’s brands will be exclusively sold in Canada by this retailer, starting in the 2020 bicycle season. Further, the
companies have agreed to explore additional opportunities for collaboration in the industry.
Ton Anbeek, CEO Accell Group: “As part of the ongoing strategic review of our North American business, we are pleased to announce the sale of our Canadian brand registrations today. We look forward to continuing to work with CTC to explore ways to extend our potential partnership. As indicated earlier, we expect to fully conclude the strategic review of our North American operations in Q3 2019 latest.”
The transaction will be recognised in Accell Group’s H2 2019 earnings. D.A. Davidson & Co. acted as financial advisor to Accell Group in this transaction.
Accell Group will publish its H1 2019 earnings on July 19, 2019.
Canadian Tire Corporation, Limited’s retail business is led by Canadian Tire. The Retail segment also includes Mark’s, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere, which offer the best active wear brands. In addition, Canadian Tire Corporation owns and operates Helly Hansen, a leading global brand in sportswear and workwear based in Oslo, Norway.
Photo courtesy Raleigh