After starting talks in February, the Accell Group reported that it recently completed the acquisition of all outstanding shares of Seattle Bike Supply (SBS), adding it to a current roster that includes fitness brands Tunturi, Bremshey and BS&T. This is the first U.S. acquisition for The Netherlands company and is being financed from its own monies, although it declined to say how much it spent.
SBS, which has annual sales of $36 million, is active in the middle and higher segments of the market for sports bicycles, bicycle parts and accessories. The company also has a strong distribution network, which supplies the majority of the specialist bicycle stores in the United States and Canada. Reportedly, SBS President Chuck Hooper will stay on to run the distributor. SBS's Redline brand is considered the market leader in the BMX segment, which is big in the United States And Australia.
Accell Group has a reputation for investing in businesses that it knows can be profitable on a stand-alone basis, and if it follows its standard M.O., it will give SBS the autonomy to run its business with resources input from the new parent. The purchase offers Accell Group an outlet to distribute its various European brands in the United States. Accell Fitness North America is based in Canada and oversees the fitness equipment brands in that area.
Accell Group added that SBS is expected to contribute to its earnings per share in 2006.