Predicting a further increase in turnover and net operating earnings for all of 2013, Accell Group's management told shareholders at its annual meeting last week that it will be able to report better results and an increase in turnover on an organic basis for the first quarter of this year, despite the long winter period, which led to a late start of the bicycle season. Average prices per bicycle went up. On the other hand, the group's turnover in fitness equipment declined.
The management also indicated Raleigh, the brand acquired in April 2012, contributed to the higher profitability and that its integration is in full swing. Among other measures, the distribution of Raleigh in Finland has been taken over to be integrated into Accell's Tunturi Hellberg subsidiary. Accell has acquired the business of XLC, the distributor of Raleigh components and accessories in the U.K., and it has decided to terminate Raleigh's manufacturing and assembly activities in Canada.
A few days earlier, Accell announced a change in the structure of its North American operations, applying its European business model to realize more synergies and efficiencies. The company has formalized the creation of a new entity, Accell Group North America, to manage a galaxy of stand-alone companies that will include Raleigh America (Raleigh and Diamondback), Raleigh Canada, Seattle Bike Supply (Redline, Torker, XLC), Currie Technologies (iZip), and Lapierre North America.
Steve Meineke, former chief executive of Raleigh America, has been named chief executive of the new entity. Chris Speyer, also from Raleigh America, where he was executive vice president of product and marketing, will serve as chief operating officer, while Sharon Robinson, also from Raleigh, will serve as chief financial officer. A new division has been established as Lapierre North America, which will be led by Kirk Bausch as director of sales and marketing and Lorna Schouten as marketing manager.
The new North American platform is expected to provide more efficiency and coordination behind the scenes for better service at the front end. The independent companies within the platform will operate in a collaborative and integrated manner while sharing efficiencies with the global parent company. Accell is expected to announce more changes and efficiencies for its North American network of independent bicycle dealers later this year.
