Accell Group sells loss making US business

first_imgAccell Group has reached agreement with private equity firm Regent for the sale of its loss making US business including the worldwide registrations of the brands Diamondback, Redline and IZIP. In addition, Accell and Regent agreed on an exclusive 2-year US distribution partnership for the international Accell brands Raleigh, Haibike and Ghost.The total consideration amounts to US$1 and a maximum contingent consideration (potential earn out) of US$15 million. The US business was effectively transferred on August 6, 2019.Following the sale of its Canadian brand registrations announced on July 12, 2019, today’s announcement completes the strategic review of the North American operations and allows Accell to focus on its European (core) business.Ton Anbeek, CEO Accell Group said “With this announcement, we have completed the strategic review of our North American business. This allows us to eliminate the profit dilution, while we can continue to distribute our global brands to the US and benefit from the growing demand for e-bikes.“We look forward to working with Regent as our US distributor and as global supplier of its sports brand Mavic.”He continued, “The completion of the strategic review results in a one-off charge which we will absorb in H2 2019. We are glad that we can now put our full focus on accelerating growth of our European core business.”Accell Group summarised the overall financial impact of the completed strategic review:The estimated H2 impact of the sale of the US business (-/- €46 million in EBIT and -/- €10 million in cash) covers the transfer of US trade working capital, main contractual obligations, the majority of personnel and the brand registrations for Diamondback, Redline and IZIP for a cash consideration of US$1. It also covers direct and indirect transaction costs (e.g. advisory and liquidation costs) as well as the loss on the intended sale of the US assets of Beeline. The potential benefit of the earn out arrangement, set as a % of EBIT in 2022-2026 with a maximum of US$15 million cumulative (contingent consideration), is excluded from the above EBIT and cash estimates.As announced previously, the sale of the Canadian brand registrations is estimated to contribute €14 million positive in EBIT and cash.With the divestment of the US business and the earlier sale of the Canadian brand registrations, the North American operations can be considered as substantially liquidated, which results in a reclassification of the translation reserve of €8 million (loss) to the Accell Group income statement.The total overall 2019 impact of the steps taken in the North American business strategic review are estimated to have an effect of around -/- €40 million on EBIT and around + €4 million on cash. These effects will be absorbed in H2 2019 while the company continues to operate within current bank covenants.Next to this and based on a first assessment, Accell currently expects qualification for the requirements of the Dutch liquidation loss facility to be probable. If Accell qualifies this could result in a potential tax benefit of €15-20 million.In H1 2019, the North American operations reported an operating loss of €11 million which included €2 million of allocated corporate fees. With the agreement reached, the profit dilution of the North American business is eliminated from August 6 onwards.In Europe, Accell Group claims the position of market leader in the bicycle market measured in turnover. Accell Group’s best known brands are Haibike (Germany), Winora (Germany), Batavus (Netherlands), Sparta (Netherlands), Koga (Netherlands), Lapierre (France), Ghost (Germany), Raleigh and Diamondback (UK, US, Canada), Tunturi (Finland), Atala (Italy), Redline (US), Loekie (Netherlands) and XLC (international).Accell Group and its subsidiaries employ approximately 3,000 people in 18 countries worldwide. The company has production facilities in the Netherlands, Germany, France, Hungary, Turkey and China. Accell Group products are sold in more than 70 countries. The company’s head office is located in Heerenveen (the Netherlands).www.accell-group.com Relatedlast_img read more

Continue reading

Back-to-back fifties a confidence booster says Johnson

first_imgAfter leading his side to a seven-wicket win over Jamaica Scorpions with half centuries in both innings, Guyana Jaguars’ captain, Leon Johnson said the performances were a confidence booster. Speaking exclusively to Stabroek Sport, Johnson, who had just one half-century in the tournament prior to the match said: “Scoring back-to-back half centuries is obviously good for my confidence, I have been working hard and training with Shiv [Shivnarine Chanderpaul] and Griff [Rayon Griffith], I felt good in the first innings and in the second innings it was just to get a start and carry on seeing the team home.”The 32-year-old added, “Hopefully I could continue it in the next three rounds and finish the tournament strong.”He acknowledged that he has not set himself any personal goals for the remainder of the tournament but confessed that his confidence is high and that he would love to have three centuries. Johnson spoke highly of his friendship with Vishaul Singh whom he shared a 101-run stand in the first innings as well as an unbroken 78-run partnership in the second innings. “Vishaul is somebody I’ve had a lot of partnerships with going back to Under-15 club cricket, school cricket, first-division cricket, all levels of cricket. I played with him and you know I understand his game pretty well and he understands mine pretty well, so when we meet up at the crease it is very easy for us to communicate and I think we run well between the wickets. Obviously I know his strengths, he knows mine and it is easy to bat with him,” Johnson stated.He pointed out that the lower order also showed their strength with the bat over the previous tournaments.“The lower order has produced with the bat as well and it has shown. They put good scores and when they come it really helps and the guys work hard on their skill. I don’t consider them tail-enders but lower order batsman.” The seamers have also stepped up and despite Veerasammy Permaul being the leading wicket-taker for Guyana over the years, a bulk of the wickets have gone to the seamers.“Over the years the seamers have developed.  Traditionally we are very spin-based and I think sometimes with them bowling a lot it can hamper them…I think the seamers’ skills have improved tremendously and I think it helps having two coaches that were fast bowlers and would help the seamers along the way.”Johnson said at the beginning of the tournament the team just wanted to play good cricket and continue playing good cricket. He, however said that it would be nice to have the record of five consecutive titles by one captain in the history of the competition. Jamaica is the only side to win five consecutive titles under two captains in Cricket West Indies Regional Four-Day cricket but should table-toppers, Guyana win this season, they would equal that record and Johnson would be the first captain to have done so.“We won four games in a row and we had a little hiccup where we lost two games and now we are back on track. We still have to go out and play good cricket. We would have seen if you don’t play good cricket consistently what could happen and the teams that are left, we not there as yet, I still think we are a long way. We still need to win two more games. We just need to take each game at a time and not worry about the championship as yet,” Johnson said.last_img read more

Continue reading