HEERENVEEN, Netherlands (BRAIN) — Accell Group reported that revenues surged in 2012 largely due to bike brand acquisitions and growth in the electric bike market.
Accell Group purchased Raleigh, Currie and Van Nicholas in 2012, and their acquisitions added 123 million euros ($163 million) to the company’s total revenue.
Full-year revenues rose 23 percent to 773 million euros ($1.02 billion) last year, up from 629 million euros ($815 million) in 2011. Net profit, however, decreased 17 percent to 26 million euros ($34 million).
The Dutch company also owns several other European brands including Atala, Batavus, Ghost, Haibike, Hercules, Koga, Lapierre, Sparta, Tunturi, Winora and XLC, and North American distributor Seattle Bike Supply.
“The year was largely dominated by the acquisition of Raleigh,” said René Takens, CEO of Accell Group in a press release. “We added brands to our portfolio that are known across the world and also strengthened our position in the USA and the United Kingdom.”
Sales of bicycles and parts and accessories increased 24 percent to 751 million euros ($993 million) last year. Accell Group sold 1,605,000 bikes in 2012, up from 1,115,000 the previous year, but the average selling price dropped to 345 euros ($456), from 417 euros ($540) in 2011. The company contributed the decrease to selling more mid-range bikes from Raleigh and Currie.
E-bikes continue to become a larger part of its business, with sales up 23 percent. In Germany alone, Accell estimates that some 350,000 to 400,000 e-bikes are sold per year.
For Accell Group, the electric bike category now accounts for 32 percent of its bicycle revenue.
Takens said sales across several European countries dipped last year due to poor weather in May and June as well as economic and financial instability. He noted that while consumers are putting off new bike purchases, they’re spending on maintenance and upgrades to bikes they already own — something that was reflected in the company’s sales of parts and accessories, up 40 percent.
The Netherlands accounted for 27 percent of revenue, despite a drop of 7 percent in sales. Germany is its second biggest market, making up 25 percent. Bike sales there were up 8 percent while P&A rose 6 percent. Other European countries, including France, Belgium, Italy, Spain and the UK, accounted for 30 percent. North America makes up 14 percent of Accell’s business.
To better position itself for future growth, Accell Group has refinanced and secured 300 million euros ($397 million), with an option for an additional 50 million euros ($66 million) for future acquisitions. The deal was brokered through six banks and will provide the capital needed for the next three years.
For 2013, the company is forecasting growth in both revenue and net profit. Accell will focus on achieving the benefits of scale from the acquisition of Raleigh and it will also actively seek other brands to bring into the fold that are a good fit.
“Any acquisitions will have to be complementary and add value to the group in the short term, in both returns and synergy,” the company said.
More: Company Press Release