HEERENVEEN, the Netherlands (BRAIN) — Accell Group N.V. has acquired Spanish parts and accessories supplier Comet S.L. Comet has exclusive distribution agreements with various major brands and sells bike parts and accessories to specialty retailers in Spain, France and Portugal.
Comet, based in Urnieta, near San Sebastian, employs 60 people across two operating companies, and generates annual revenues of around 27 million euros ($35.6 million).
Accell Group N.V. owns several European bike brands including Ghost, Batavus, Winora, Koga, Haibike and Lapierre, as well as Raleigh, Diamondback, Torker, Currie, Redline and SBS in the U.S., which make up Accell North America.
“Comet is our first acquisition in Spain, a market where we have been looking for some time for a good partner to extend Accell Group’s European distribution network for parts and accessories,” said René Takens, CEO of Accell Group. “Comet is a major player, with the number one position in the Spanish market and is therefore an excellent fit with our acquisition strategy. There are sufficient signs that the Spanish economy is starting to recover, which is resulting in a growing demand for bicycle, and consequently also for parts and accessories.”
In a statement announcing the acquisition, Accell said that the European market for P&A is growing but also consolidating, with suppliers wanting to do business with one major company that can handle distribution in the region’s main sales markets. Aside from giving it a better position in the Spanish market, Comet also has significant market share in Portugal and France, the company noted.
The current management will continue to manage Comet, Accell said. But Accell will invest in sales systems and internal logistics to support Comet’s growth.
“Furthermore, synergy benefits will be explored in the short term through the combination of Comet’s sales operations with existing Spanish sales operations of Lapierre, Ghost and Haibike bicycles and the sales operations of Wiener Bike Parts,” Accell said.
Accell expected to complete the acquisition in the third quarter. It planned to buy the company’s shares at seven times its normalized operating result, which is slightly higher than the historical average of 6 percent of Accell Group.