Accell Group today announced it has reached an agreement on the sale of its Canadian brand registrations of Raleigh, Diamondback, Redline and IZIP, to Canadian Tyre Corporation (CTC) for $16 million.
CTC is one of Canada’s largest family of retail banners, with the brands exclusively sold in Canada by this retailer starting in the 2020 season.
The move comes as part of Accell’s strategic review of its North American business operations, announced in December last year.
Ton Anbeek, CEO of 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.”
According to the group, the companies have agreed to explore additional opportunities for collaboration on the industry.
The transaction will be recognised in Accell’s H2 2019 earnings, with DA Davidson & Co acting as financial adviser to Accell throughout the transaction.
The company will publish its H1 2019 earnings on 19th July.