Swedish company Thule, best known for its packing solutions for cars and other vehicles, but for over ten years also a manufacturer of various types of bags, continues to acquire companies. At the end of Q2, Thule acquired Reacha, a German bicycle trailer manufacturer, which is intended to complement the company’s segment of multisport and bicycle trailers for children.
As part of its growth journey, Thule has now laid hands on mobile accessories company Quad Lock. The Australian company, which was started by two friends in 2011 when they both launched their first product, a cell phone holder for cycling, has today grown into a market leader in its niche.
Quad Lock’s Ebitda margin is 25 percent
Quad Lock has sales in approximately 100 countries, of which about 75 percent are via e-commerce direct-to-consumers. The head office is based in Melbourne, Australia. The company had approximately SEK 1.4 billion (€121.8m) in sales in the last twelve months and achieved an Ebitda margin of 25 percent.
Quad Lock’s CEO Andrew Poole is pleased that Thule will be the company’s new owner and sees several similarities between the companies.
“We are excited to become part of the Thule Group,” Poole said. “It’s striking how similar our brands and cultures are. Like Thule, we focus on high-quality products that can withstand harsh conditions and are appreciated by customers who love adventure,” he concluded.
The purchase price amounts to AUD 500 million (€310m), corresponding to a multiple of 10x Ebitda. Thule will fund the acquisition through cash, existing credit, and newly issued shares, with around SEK 740 million (€63,8m) financed through approximately 2.1 million Thule shares. The transaction is expected to impact Thule’s earnings per share and Ebit margin positively. Additionally, key management shareholders at Quad Lock will retain a stake in Thule, aligning both companies’ goals.
The deal is set to close in Q4 2024, pending regulatory approval.
Thules 2030 plan is sales of €1.7 billion
Mattias Ankarberg, President and CEO of Thule Group, thinks the acquisition of Quad Lock will be an important key to Thules financial goals of 2030.
“Quad Lock is a global market leader in its niche and, like Thule, is passionate about creating the best products for active adventurers, with a strong focus on quality and innovation. Welcoming Quad Lock’s talented employees to the Thule family strengthens us in several areas and is a valuable step towards our financial targets 2030; sales of SEK 20 billion (€1.7b) and an Ebit margin of at least 20 percent.”
Thule says that Quad Lock also helps to strengthen Thule Group’s position in the Asia-Pacific region, where the acquisition increases the share of Thule’s sales from about 5 to 10 percent. Direct sales to consumers will increase from approximately 7 to 15 percent of sales. In addition, Thule will gain access to a customer base of motorcycle enthusiasts, which is Quad Lock’s largest segment, as well as expertise in electronics such as wireless charging of mobile phones on motorcycles.
Solid growth for Thule in Q2 despite challenging markets
Thule was founded in 1942. Today, it operates both physical stores and e-commerce around the world. Despite challenging global markets, Thule Group produced a solid third quarter with improved sales, gross margin, profitability, and cash flow. Operating cash flow rose by 14 percent to 955 million Swedish kronor (€90.5m), and operating income increased by 15 percent to SEK 413 million (€39.2m).
Read more about Thule and Quad Lock at our sister publication, The Outdoor Industry Compass.
