Accell Sells Registration in Canada of Major Brands to Country’s Biggest Bike Retailer
HEERENVEEN, Netherlands – Last Friday Accell Group NV announced that it has reached agreement on the sale of its Canadian brand registrations of Raleigh, Diamondback, Redline and IZIP to Canadian Tire Corporation; the country’s biggest bike retailer. The sale (for USD 16 million – 14.2m euro) is part of Accell’s strategic review of its North American business operations which was announced in December 2018.
In a press release on the brands registration sale in Canada Accell notes that Canadian Tire Corporation (CTC) “Is one of Canada’s largest and most trusted family of retail banners and Accell Group is pleased that its brands will be exclusively sold in Canada by this retailer, starting in the 2020 bicycle season. Further, the companies have agreed to explore additional opportunities for collaboration in the industry.”
Canadian bike market
Canada is a bike market of between one and 1.3 million units annually which are for about 75 percent distributed through retail giants like Canadian Tire Corp and Wal-Mart. The remaining 25 percent of the market is served through about 2,000 IBDs that next to bikes in summer also sell wintersport equipment and snowscooters.
Ton Anbeek, CEO Accell Group says “As part of the ongoing strategic review of our North American business we are pleased to announce the sale of our Canadian brand registrations today. We look forward to continuing to work with CTC to explore ways to extend our potential partnership. As indicated earlier, we expect to fully conclude the strategic review of our North American operations in Q3 2019 latest.”
The transaction will be recognised in Accell Group’s 2nd half year 2019 earnings. At the end of this week, on 19 July, Accell Group will publish its 2019 earnings for the first half year.