In a joint press release, Accell Group, the parent of Raleigh, Ghost, Haibike, and other bike brands, and a private consortium headed by Kohlberg Kravis Roberts & Co. (KKR) recommended shareholders accept the all-cash offering for its shares for 1.56 billion euros ($1.76 billion).
The €58 euro per share offer price represented a 26 percent premium over the closing price just before the deal was announced on January 24, and a 42 percent premium over its three-month volume-weighted average price per share. The KKR-led consortium group also includes Teslin Alpine Acquisition B.V.
The acceptance period runs from April 8, 2022 to June 3, 2022. The completion of the offer is expected in late Q2.
Rob ter Haar, chairman of the Supervisory Board of Accell Group, said: “We are pleased to announce an important milestone for the future of Accell Group with the formal launch of the offer by the Consortium today. Simultaneously, we published our Position Statement, in which we, as Supervisory Board, together with the Board of Management, confirm that we unanimously support the transaction and recommend the offer for acceptance by the shareholders. With this transaction, Accell Group will get a strong shareholder focused on long-term value enhancement. We believe that in a private setting with the Consortium, Accell Group will be better positioned to make significant up-front investments in its business to drive future growth amid continued supply chain volatilities and inflationary pressures. We believe it will also provide Accell Group with more resilience in an increasingly competitive e-bike market and enable the group to further strengthen its position as one of the world’s leading bicycle market players in the years to come.”
Ton Anbeek, CEO of Accell Group, said: “Today marks an important next step for Accell Group. The formal launch of the all-cash offer provides shareholders with the opportunity to tender their shares during an eight-week acceptance period that starts on April 8, 2022. In addition, we are pleased that the transaction has been approved by the relevant competition authorities. We believe in an exciting future for both Accell Group and our employees with the Consortium as our shareholders. With KKR, we will also get a new, financially strong and knowledgeable partner on board that will help us to accelerate the roll-out of our existing strategic roadmap, enhance our global footprint, explore suitable acquisitions and further leverage our scale. This matches our purpose and ambition to ‘move cycling forward’ and lead the bicycle industry by combining smart design and innovative technology for green mobility with the best value and customer experience.”
Daan Knottenbelt, partner and head of Benelux at KKR, said: “Despite the ongoing volatility in equity markets and global supply chains and an increased level of geopolitical uncertainty, we are pleased to launch the offer today with the full support of Accell’s Boards. We continue to believe that KKR would be the ideal partner with the capabilities to help Accell Group overcome these and other challenges, and believe the offer delivers attractive and immediate de-risked cash value to shareholders.”
Photo courtesy Accell Group/Raleigh
