Heerenveen, The Netherlands – As part of its strategic review of the North American business operations which was announced in December 2018, Accell Group N.V. (Accell Group) reached agreement on the sale of its Canadian brand registrations of Raleigh, Diamondback, Redline and IZIP to Canadian Tire Corporation, Limited (CTC) for a cash consideration of USD $16 million.
CTC is a family of businesses that includes a Retail segment, a Financial Services division and CT REIT. Its retail business is led by Canadian Tire, which was founded in 1922.
Accell Group is pleased that its brands will be exclusively sold in Canada by this retailer, starting in the 2020 bicycle season. Furthermore, the companies have agreed to explore additional opportunities for collaboration in the industry.
In a company press release CEO Accell Group, Ton Anbeek noted, “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 recognized in Accell Group’s H2 2019 earnings.