Accell Group is acquiring all the outstanding shares of Bianchi Bisiklet A.S., giving the acquisitive Dutch bike and fitness group one of the top three positions in both Turkey and Italy, two strong markets for bikes and accessories. Accell Group already owns the Batavus, Bremshey, Ghost, Hai Bike, Hercules, Koga, Lapierre, Loekie, Redline, Sparta, Staiger, Tunturi, Winora and XLC brands.
Bianchi Bisiklet is a Turkish bike producer that generates annual sales of about €30 million, employing about 300 people and exporting 60 percent of its output. It sells Bianchi bicycles in Turkey under an exclusive license from the Italian brand by the same name, which belongs to the rival Cycleurope group.
Part of the Turkish company's total capacity for the production of up to 250,000 bicycles per year is used to make entry-level models for Bianchi that are sold in other markets under an agreement that will probably continue. It also make bicycles for the Italian Atala group, in which the Turkish company acquired a 50 percent stake several years ago.
Accell’s takeover in fact includes Bianchi Bisiklet’s 50 percent share in Atala. The other half is still owned by strategic Italian investors. Atala’s bikes are sold under the brands Atala, Whistle, Carraro and Dei. Its revenues are about €31 million a year.
Under the new ownership, Bianchi Bisiklet will be renamed Accell Bisiklet. Current management, as well as that of Atala, will stay in place. The deal should be completed in the next few months. Accell will use its existing credit facilities for the purchase.
For the full year 2010, Accell Group is maintaining its earlier guidance of higher sales with a 5 to 10 percent increase in net profit. The company said that it grew slightly slower than expected in the year to October, but it grew nonetheless. E-bikes were strong, while regular bikes dropped slightly over the year. The fitness segment improved strongly after Accell shut down its offices in the U.K. and Germany.
The outlook for the longer term is still optimistic. There is strong demand for bicycles, in particular electric bicycles and sports bicycles in the higher segment of the market.
