The shareholders of Raleigh Cycle Limited (Raleigh), a leading bicycle and cycle accessories business, have sold the company to Accell Group NV (Accell) for US$78 million.
Raleigh operates in the UK, US and Canada, along with worldwide licensing activities and a sourcing arm in Asia. Its best known global brands are Raleigh and Diamondback. There is a very complementary fit between the two businesses, with very little geographical overlap; in particular Raleigh will immediately give Accell a major presence in the UK, the USA and Canada (where Raleigh operates its own production facility). The two businesses also share the same management values and a similar decentralized management structure.
Accell is active internationally in the mid-range and higher segments of the market for bicycles, bicycle parts and accessories, and fitness equipment.
Alan Finden-Crofts, CEO of Raleigh commented: "I am delighted with the conclusion of the sale of Raleigh to Accell. As talks progressed with the various interested parties earlier this year, Accell emerged as the clear preferred buyer for the business, given the highly complementary product range and geographic presence of the two businesses. In Raleigh, Accell is acquiring a true global brand with 125 years of heritage and distribution into over 140 countries worldwide and I am entirely confident that Raleigh has found the ideal buyer to support the employees, customers, suppliers and the future growth of the business."
Oaklins Cavendish, based in the UK, acted as corporate finance advisor to the seller in this transaction.
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