ZEG, the German-based buying group for specialist bike retailers, has confirmed that it is acquiring the bicycle division of Kettler, the fitness equipment, furniture and toys supplier that went into self-administered receivership in June. The deal includes the group's assembly plant in Hanweiler, employing about 80 people who are to remain on board.
ZEG said in a press release that it has long been a Kettler partner. The buy was meant to capitalize on Kettler's innovation and quality, as well as the “made in Germany” label. Production and sales of the Kettler bicycle division were formally taken over by a new subsidiary of ZEG, Kettler Alu-Rad.
Established in Cologne, the ZEG group generates sales of over €500 million with more than 1,000 members and partners in Germany as well as the Benelux countries, Austria, Switzerland, France, Poland and the Baltic states. ZEG, which describes itself as the largest European bicycle retail buying group, already acquired the Wanderer brand two years ago and Hercules last year.
The deal was described as an important part of Kettler's restructuring program. The company said it would outline its detailed rescue plan to creditors by the end of the year and build on its position as a leading producer of fitness equipment, furniture and toys. The acquisition of the bike division, under undisclosed terms, is subject to the approval of the German competition authorities.
