KKR & Co. is betting on the cycling boom going the distance.
The private equity firm is buying Dutch bike maker Accell Group NV for $1.8 billion. The price represents a 26% premium on Accell’s closing price as of Friday. The company’s stock leapt around 26% on Monday.
- Accell, a leading European e-bike producer, lists 20 brands based in five European countries under its umbrella.
- KKR plans to take Accell private.
- The deal, which is expected to close in the third quarter, received unanimous support from Accell’s board.
While the cycling market has been riding high since the start of the pandemic, electric bikes are doing especially well. U.S. e-bike sales rose 240% year-over-year for the 12 months ending July 2021, compared to 15% growth to $8.5 billion for cycling equipment revenue.
KKR Staying Active
Meanwhile, KKR’s bid for Telecom Italia was complicated by the appointment of Pietro Labriola as the Serie A broadcast rights holder’s new CEO. The attempted purchase of Italy’s largest telecommunications company could also be affected by the political situation, should Prime Minister Mario Draghi be replaced.
A KKR-owned SPAC could take PetSmart public in a $14 billion deal.