Netherlands-based Accell Group NV, backed by Kohlberg Kravis Roberts & Co (KKR), agreed to a restructuring that writes off 40 percent of its debt and will see its liabilities at the operating group level cut to €800 million ($881 million) from €1.4 billion, with maturities extended through to 2030.
The company also announced that the deal, led by KKR, includes recapitalization, with €235 million of new funding to be injected into the business. Following the transaction, current shareholders will retain a majority controlling stake.
In January, KKR increased its shareholder loan to Accell to €250 million from €150 million in response to the group’s dwindling liquidity. KKR acquired Accell Group in January 2022.
The recapitalization transaction is expected to be fully implemented by early Q1 2025. Accell continues to work with its stakeholder groups and advisers to finalize and implement the transaction. Accell invited the remaining lenders to receive further procedural information, which it will provide to lenders in the coming days.
Implementation will either be by contractual process or, if required, a court process to approve the transaction in the UK and/or the Netherlands, for which the company has obtained relevant and requisite stakeholder consent.
Final implementation will be subject to certain customary conditions, approvals, and finalization of specific terms.
Tjeerd Jegen, CEO, said, “The agreement confirms our key stakeholders’ confidence in the business, which supports the optimistic long-term outlook of the biking market and the role. A Dutch bike maker backed by KKR & Co has agreed on a restructuring that writes off 40 percent of its debt.
“Upon successful implementation of the recapitalization, we will have a revised, fit-for-purpose capital structure and increased liquidity, allowing us to further implement and accelerate the One Accell strategy. This strategy will make us more efficient and put us in a better position, while it will also make us more agile and provide us with the flexibility we need to stay at the forefront of developments. We can now fully focus on the future as we continue to innovate and look forward to launching new models of our unique and iconic brands together with our suppliers and dealers,” says Jegen.
Gijsbert de Zoeten, CFO, said, “I am pleased that we can announce this agreement today, leading to a materially deleveraged Accell Group. We are grateful for the constructive approach that our shareholders, debtholders, and banks have shown in reaching this agreement. With their support, we will have a sustainable capital structure for Accell in the future. This shows the confidence all parties have in our business and strategy.”
Accell Group’s portfolio includes Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe, and Carqon. Its P&A brand is XLC, a manufacturer of bike parts and accessories.
Image courtesy Accell Group/Haibike
