Accell Group Sells Tunturi Fitness Division
HEERENVEEN, the Netherlands – Accell Group has sold its Tunturi fitness activities to a group of private investors. These investors do not hold share positions within Accell Group NV. The transaction is expected to have a limited impact on the holding company’s 2014 result.
René Takens, Accell Group’s CEO says in a press release issued today: “Over the past few years we constantly adapted the fitness organization to the continued challenging market environment for these specific products, sharply reducing the amount of working capital required in the process. This ultimately created the basis for the activities to be transferred to investors.”
“Fitness activities had become too small”
In 2013 Tunturi Fitness BV generated a turnover of € 18 million or 2.1% of Accell Group’s revenue of € 849 million. “The scale of the fitness activities had become too small for Accell Group to allow them to remain part of the group. And so we are very content that investors are willing to take these activities,” René Takens adds.
Accell Group NV acquired Tunturi in September 2003 from a bank. At that time the Finnish company manufactured bicycles and fitness equipment such as exercise bikes and treadmills. It employed about 180 people and generated, including bicycles a turnover of € 34 million. The acquisition was said to give Accell Group an important European position in the field of fitness equipment, which fitted well in Accell Group’s strategy, which was focused on fun, fitness and free-time products.
Tunturi’s activities will be continued independently at the present location in the Dutch city of Almere, where the company is based. The newly founded company, called Tunturi New Fitness BV, will license the Tunturi name from Accell Group who remains brand owner. The acquisition will not affect Tunturi’s 32 employees.
Tunturi New Fitness BV supplies dealers in the Netherlands, Belgium and Germany, and distributors in 30 countries. One such distributor is Tunturi Hellberg Oy, a Finnish subsidiary of Accell Group. Tunturi Hellberg Oy will continue as the distributor for Scandinavia.
“Over the past few years we have kept various options open for the relatively small-scale fitness operations,” Takens continues. “Where possible the organization has been adapted and the costs brought in line with declining turnover levels. The spin-off of Tunturi Fitness BV provides the company with new opportunities.”
The transfer of the Tunturi Fitness BV assets and staff to the acquiring party is expected to take place on 1 August 2014. A number of operating liabilities will be repaid at the time of the transfer.