€ 50.000.000 annual
To be discussed
Company in the high-end bicycle market seeks equity partner for 51% of its share capital. The company has an UK based and a Dutch based activity (the Businesses) and is a respected player within this market segment. Sales are EUR 50 million with an EBIT of 10%. Products are shipped worldwide with next to Europe a.o. customers in the US, Japan and Australia.
A greater presence in the market, to bank on a greater economy of scale and to facilitate the fast growth from the past as well as the growth in the future are the main drivers to seek for a strong partner. Whilst the Businesses are predominantly self-standing, certain support services to be centralized into The Netherlands. These centralized functions to be facilitated by a.o. the equity partner. Both Businesses will continue to be run by the current management.
Number of full-time employees at the end of 2020 was 48. The company is valued at € 24 million for 100% of its shares.
The European bicycle market was valued at EUR 14,4 billion in 2020 and is projected to grow with 3,73% annual during the period 2021-2026. The impact of Covid-19 was severe during the onset of 2020, mostly accountable to lockdown and barriers to transport and movement. However, post the ease in lockdown measures, consumers have increased their participation in physical endurance and activities, propelling the market of cycles.
Over the long term, the European bicycle market is driven by bicycle demand for both fitness and leisure.
Key Market Trend is favourable government initiatives supporting the bicycle industry growth by a.o. aggressively deploying the infrastructure.
The involvement of the equity partner is necessary to improve efficiency and for even higher commercial visibility.