Derby Cycle AG of Germany has found a white knight to rescue it from what it has dubbed the a hostile takeover by rival Accell Group of the Netherlands.
On Monday, Derby Cycles said the business combination agreement it is negotiating involves a public takeover offer to all shareholders of Derby Cycle AG. European media speculated the potential buyer is Deutschland Pon, a company with extensive automotive holdings that is controlled by one of the wealthiest famlies in the Netherlands. Pon already owns the Royal Dutch Gazelle brand, which is now available in the United States.
Derby Cycle is Germany's largest bicycle manufacturer in terms of revenues, and one of the leading manufacturers in Europe. It's brands incluide Kalkhoff, Focus, Raleigh, Univega and Rixe brands. All models are developed and assembled at the company's base in Cloppenburg, Germany and distributed through specialty retailers.
With around 550 employees, Derby Cycle achieved revenue of EUR 173 million in the 2009/2010 financial year, 72.6 percent of which was generated in Germany, and 27.4 percent abroad. Earnings before interest and tax (EBIT) amounted to approximately EUR 12 million. Derby Cycle sold a total of around 430,000 bicycles, of which 44,000 comprised e]bikes. As a consequence, Derby Cycle has asserted a position of clear market leadership in 2010 with a 20 percent market share. The company forecasts revenues of EUR 220 million to 240 million, and an EBIT margin of 8 to 9 percent (2009/10: 7.0 percent) for the 2010/11 financial year that ends on September 30, 2011.