Netherlands-based Accell Group announced a restructuring that will see its equity holders, led by U.S. private-equity giant Kohlberg Kravis Roberts & Co. (KKR), hand over their shares to senior lenders in exchange for new funding and a substantial debt reduction.
A consortium led by KKR and Teslin Alpine Acquisition in 2022 acquired Accell, whose bike brands also include Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe, and Carqon, for Є1.56 billion ($1.77 bn). Accell’S P&A brand is XLC, a manufacturer of bike parts and accessories.
The purchase was made amid a cycling boom spurred by the pandemic, feeding expectations of continued strong long-term fundamentals in sustainable mobility and increasing e-bike adoption across Europe. However, a global slowdown in demand for road bikes and e-bikes arrived, and cycling’s recovery has been exacerbated by pandemic-related supply chain challenges that led to elevated inventory levels.
The restructuring is the second for Accell in less than two years. In October 2024, Accell announced a major debt restructuring to address severe financial distress, cutting debt by 40 percent to €800 million from €1.4 billion and extending maturities to 2030. The deal, initiated after weak 2024 sales and a Babboe bike recall, included €235 million in fresh funding from lenders and an initial equity conversion by KKR and took effect in the first quarter of 2025.
Accell’s sales fell 22 percent in 2024 due to extensive discounting in the bike space after an 11 percent decline in 2023.
In a debt ratings update from early February, Fitch Ratings said it expects Accell’s revenue to decline about 15 percent in 2025 and a further 9 percent in 2026 before seeing a return to growth in 2027 and 2028. Fitch also said it expects Accell’s EBITDA to remain negative in 2025, although losses are expected to narrow markedly versus the €350 million to €400 million negative EBITDA over 2023 and 2024. The improvement is expected to be driven by a better product mix and less aggressive discounting. Fitch expects Accell’s EBITDA to reach break-even in 2026 due in part to cost-saving efforts.
The agreement announced on Wednesday, February 18, follows last month’s media reports about a possible debt restructuring at Accell. The majority of lenders have agreed to a transaction that will significantly reduce Accell’s total debt and considerably strengthen its financial position.
Equity shares will be transferred to “existing super senior lenders,” according to the statement.
Jonas Nilsson, CEO of Accell, said: “With this new funding and debt reduction, we are taking an important next step in our transformation journey and can now focus on shaping our long-term future. Accell is an extraordinary company, with a unique position in the European bike market. After two years of hard work, we are well advanced in our plans to fundamentally transform the business. We’d like to thank KKR for its significant support and commitment as a responsible shareholder throughout its ownership. The business is in a much stronger position as a result of shareholder support, and this new agreement is a major milestone in achieving the exciting potential of our portfolio of iconic brands.”
Mohammed Hassan, CFO of Accell, stated: “The prolonged downturn faced by the entire industry post-COVID had a material impact on bike sales across the region, and undermined the impact of the recapitalization transaction Accell implemented in early 2025. This agreement, combined with our extensive transformation over the recent years, will significantly improve Accell’s financial situation and future prospects. The support of our shareholders and lenders was critical in reaching this agreement, for which we are very grateful.”
The agreement will also entail a transfer of control of Accell Group from the existing majority shareholders to a new corporate structure. The transfer of control will take effect in the coming weeks.
KKR also issued a statement on the ownership transition that follows.
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KKR invested in Accell in 2022 based on strong long-term fundamentals in sustainable mobility and increasing e-bike adoption across Europe. At the time of the investment, market conditions were supported by strong demand and supply constraints, and Accell’s portfolio of leading brands and market positions provided meaningful exposure to these structural growth trends.
Shortly thereafter, the European bike industry entered an unprecedented and prolonged downturn. Excess inventory, sustained discounting and weakening consumer demand created severe and persistent pressure across the sector, affecting manufacturers industry-wide. Throughout this period, KKR worked closely with Accell’s management team and acted as a supportive shareholder, providing substantial financial backing and deep operational expertise to help stabilize and strengthen the business.
Following constructive engagement, Accell Group, its shareholders and lenders have now agreed to a new ownership structure led by the company’s existing lenders to support the business in its next phase.
As part of this agreement, Accell will receive additional funding to ensure stability and give management the necessary runway to remain focused on operating the business. This capital will be directed toward strengthening liquidity, supporting day-to-day operations and positioning the company for the upcoming season as industry conditions continue to normalize.
During its ownership, KKR supported a wide-ranging program of operational and organizational measures, consistent with KKR’s role as a long-term and responsible investor. This included continuing to support growth initiatives and new product launches, while strengthening leadership, improving liquidity and resilience, and centralizing operations as part of the One Accell strategy. These actions were taken to ensure continuity of operations, support Accell’s customers and partners, and position the business for a return to sustainable profitability as market conditions normalize.
As a result of the severity and duration of the industry downturn, Accell’s capital structure evolved and lenders assumed greater economic responsibility for the business. With the company now stabilized and the season soon to pick up, Accell will transition to a new ownership structure in which lenders, working closely with management, are positioned to support the company’s ongoing recovery and execution of its business plan.
Jonas Nilsson, CEO, Accell Group said: “We would like to thank KKR for its significant support and commitment as a responsible shareholder throughout its ownership. The business is stronger as a result of that support, and we are well advanced in our plans to fundamentally transform the company. Accell is an extraordinary business, with a unique position in the European bike market and a portfolio of iconic brands, and we remain confident in its potential following the hard work undertaken during a challenging period for the industry.”
KKR would also like to recognize the resilience and commitment shown by Accell’s management and employees throughout this challenging period.
Image courtesy KKR / Raleigh
