Accell secures additional funding from new owners, and debt reduction

Accell has revealed it is shifting away from ownership by the KKR investment group, and has secured new funding and a substantial debt reduction.

The majority of its lenders have agreed to a transaction that will significantly reduce Accell’s total debt and considerably strengthen its financial position, with the business adding that the shareholding in Accell will be transferred for the benefit of existing super senior lenders.

Jonas Nilsson, CEO, Accell said: “With this new funding and debt reduction, we are taking an important next step in our transformation journey and can now focus on shaping our long-term future. Accell is an extraordinary company, with a unique position in the European bike market.

“After two years of hard work, we are well advanced in our plans to fundamentally transform the business. We’d like to thank KKR for its significant support and commitment as a responsible shareholder throughout its ownership. The business is in a much stronger position as a result of shareholder support, and this new agreement is a major milestone in achieving the exciting potential of our portfolio of iconic brands.”

Mohammed Hassan, CFO, Accell said: “The prolonged  downturn faced by the entire industry post-Covid had a material impact on bike sales across the region, and undermined the impact of the recapitalisation transaction Accell implemented in early 2025.

“This agreement, combined with our extensive transformation over the recent years, will significantly improve Accell’s financial situation and future prospects. The support of our shareholders and lenders was critical in reaching this agreement, for which we are very grateful.”

The agreement will also entail a transfer of control of Accell Group from the existing majority shareholders to a new corporate structure. With the new funding and reduced debt, Accell will be on a more stable footing for management to deliver the Group’s long-term strategic plan, the firm said, with the transfer of control will take effect in the coming weeks.

KKR bought Accell in early 2022, off the back of a lockdown boom but only months before the industry was starting to grapple with its decade-defining overstocks problem. A difficult couple of years saw some reorganisation, but in 2024, it was agreed that the group would cut its debt to the tune of €600 million. This year there were some reports that KKR continued to be nervous about losses, however this latest move appears to have drawn a line under any concerns, with KKR effectively now leaving the bicycle industry behind.

KKR said: “KKR invested in Accell in 2022 based on strong long-term fundamentals in sustainable mobility and increasing e-bike adoption across Europe. At the time of the investment, market conditions were supported by strong demand and supply constraints, and Accell’s portfolio of leading brands and market positions provided meaningful exposure to these structural growth trends.

“Shortly thereafter, the European bike industry entered an unprecedented and prolonged downturn. Excess inventory, sustained discounting and weakening consumer demand created severe and persistent pressure across the sector, affecting manufacturers industry-wide. Throughout this period, KKR worked closely with Accell’s management team and acted as a supportive shareholder, providing substantial financial backing and deep operational expertise to help stabilise and strengthen the business.

“Following constructive engagement, Accell Group, its shareholders and lenders have now agreed to a new ownership structure led by the company’s existing lenders to support the business in its next phase.

“As part of this agreement, Accell will receive additional funding to ensure stability and give management the necessary runway to remain focused on operating the business. This capital will be directed toward strengthening liquidity, supporting day-to-day operations and positioning the company for the upcoming season as industry conditions continue to normalise.

“During its ownership, KKR supported a wide-ranging programme of operational and organisational measures, consistent with KKR’s role as a long-term and responsible investor. This included continuing to support growth initiatives and new product launches, while strengthening leadership, improving liquidity and resilience, and centralising operations as part of the One Accell strategy. These actions were taken to ensure continuity of operations, support Accell’s customers and partners, and position the business for a return to sustainable profitability as market conditions normalise.

“As a result of the severity and duration of the industry downturn, Accell’s capital structure evolved and lenders assumed greater economic responsibility for the business. With the company now stabilised and the season soon to pick up, Accell will transition to a new ownership structure in which lenders, working closely with management, are positioned to support the company’s ongoing recovery and execution of its business plan.

“KKR would also like to recognise the resilience and commitment shown by Accell’s management and employees throughout this challenging period.”