As part of its strategic review of North American business operations Accell Group has reached agreement on the sale of its Canadian brand registrations of Raleigh, Diamondback, Redline and IZIP to Canadian Tire Corporation (CTC) for a cash consideration of US$16 million.
Accell Group notes that ‘CTC is one of Canada’s largest and most trusted family of retail banners and is pleased that its brands will be exclusively sold in Canada by this retailer, starting in the 2020 bicycle season. Further, the companies have agreed to explore additional opportunities for collaboration in the industry.’
Ton Anbeek, CEO Accell Group, said “As part of the ongoing strategic review of our North American business, we are pleased to announce the sale of our Canadian brand registrations today. We look forward to continuing to work with CTC to explore ways to extend our potential partnership. As indicated earlier, we expect to fully conclude the strategic review of our North American operations in Q3 2019 latest.”
The transaction will be recognised in Accell Group’s H2 2019 earnings. D.A. Davidson & Co. acted as financial advisor to Accell Group in this transaction. Accell Group will publish its H1 2019 earnings on 19 July 2019.