Backcountry reported it entered into a definitive agreement to sell its European subsidiary, Bergfreunde, to Decathlon to reduce its leverage and focus on its core business in North America.
Terms were not disclosed.
Bergfreunde was founded in Germany in 2006 and has a strong presence in 11 European countries: Germany, Austria, Switzerland, Denmark, France, Finland, Italy, the Netherlands, Spain, Sweden, and the United Kingdom. In addition, Bergfreunde operates a European e-commerce platform.
Decathlon, headquartered in France, is the largest sporting goods retailer in the world. It will acquire the Bergfreunde brand and customer base in Europe, continuing to expand its presence in the active outdoor space.
Through this “major investment,” Bergfreunde is expected to gain an opportunity to connect to new customers in the outdoor-premium market segment via a fully digital business model, while growing its presence in several major markets in Europe. Upon closing, Bergfreunde will remain an autonomous and independent subsidiary, operating under the Bergfreunde brand, with their current business model being unchanged. Bergfreunde management will remain in their current roles.
Barbara Martin Coppola, chief executive officer of Decathlon, said in a separate statement, “This strategic partnership will enable Decathlon to strengthen our global outdoor offering with a recognized and valued premium pure-player. With a strong presence in several European markets, including Germany, Europe’s biggest outdoor market, Bergfreunde will add to our ecosystem, alongside Alltricks. We are determined to accompany Bergfreunde’s teams as they continue to accelerate their development to the benefit of their customers and partners, to move people through the wonders of sport.”
“Decathlon is a financially strong and long-term operating partner, and we are confident they are the right partner for us as we enter this next phase of growth. We look forward to benefiting from Decathlon’s leadership in sustainability, internationalization and scaling,” said Matthias Gebhard, managing director of Bergfreunde. “Bergfreunde has experienced significant growth under Backcountry’s ownership, and we are thankful for our successful partnership.”
“We’re proud of Bergfreunde’s growth over Backcountry’s 10-year ownership and look forward to watching its continued success with Decathlon,” said Melanie Cox, Backcountry CEO. “Closing this deal will allow Backcountry to focus on furthering its commitment to the North American market, as well as explore new opportunities to expand the Backcountry brand.”
Backcountry, with North American subsidiaries Competitive Cyclist, Motosport and Steep and Cheap, will continue to grow its business through e-commerce, retail storefronts and wholesale expansion.
J.P. Morgan Securities acted as financial advisor to Backcountry, and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor.
Photo courtesy Bergfreunde
