Accell recapitalisation secures majority creditor support

There’s good news for Accell Group and its brands – including Haibike, Raleigh, Lapierre, Babboe, Winora and others – with the group securing sufficient support from its key stakeholders to proceed with its recapitalisation plan, which was laid out in October.

The recapitalisation creates a sustainable financial and operational platform for Accell to execute its strategy, the group said. Approximately 80% of Accell’s senior term and revolving facility lenders have committed their support for the recapitalisation, while Accell’s other key creditors unanimously backed the plan. With this, Accell has reached the required approval thresholds for the implementation of the transaction by way of a UK Scheme of arrangement.

Accell, owned by KKR since 2022, has had a torrid time during a period of difficult trading in the cycling industry. A new CEO came in 13 months ago and 12 months ago Raleigh UK was tasked with a drastic restructure, quitting P&A and ceasing its warehouse operations (Raleigh UK has since relocated in Nottinghamshire). Other tribulations have seen Babboe in the middle of a quality scandal.

From €1.4 billion to €800 million

The PR statement confirms that the transaction reduces Accell’s senior debt by around 40% from approximately €1.4 billion to approximately €800 million and extend its maturities. The recapitalisation has already led to a strengthened liquidity position by way of a material cash injection. The transaction includes a total cash funding of approximately €235 million, providing the company with the ability to invest in the business’ future.

Next steps include court convening and sanction hearings and a creditors meeting for Accell’s senior term and revolving facility lenders. Implementation of the recapitalisation is expected by early Q1 2025. Final implementation will be subject to certain customary conditions, approvals and finalisation of certain documentation.