From kickstarter to £260m takeover: Thule acquires Quad Lock

Earlier this month, Thule announced the acquisition of phone mount specialist Quad Lock for AUD 500 million / SEK 3.6 billion / £260 million.

Starting off as a Kickstarter (are there fewer of those around these days?), Quad Lock has grown into a big business – as indicated by that purchase price. Quad Lock turnover is SEK 1.4 billion, with a 25% EBITDA margin, therefore fitting in with Thule’s brand and strategy of developing market leading positions in attractive niches, it said. The purchase price corresponds to a multiple of 10x EBITDA, Thule explained.

Quad Lock started in 2011 when the two Australian founders invented a secure and user-friendly solution to mount mobile phones on their mountain bikes. The range evolved into robust solutions for biking, motorcycling, and off-road car enthusiasts. It now sees sales in around 100 countries, with approximately 75% via e-commerce D2C.

Thule said the move will also strengthen its position in Asia-Pacific, where the acquisition increases the share of Thule’s sales from about 5 to 10 percent. Direct sales to consumers will increase from approximately 7 to 15% of sales. In addition, Thule will gain access to a customer base of motorcycle enthusiasts, which is Quad Lock’s largest segment, as well as expertise in electronics such as wireless charging of mobile phones on motorcycles.

Thule’s recent Q3 2024 financials revealed that new products had helped it to improve sales and profitability.

“We are taking Thule to the next level, and we are doing it by building on our strengths,” said Mattias Ankarberg, President and CEO of Thule Group. “Our profitable growth is driven by our ability to develop market-leading positions in attractive niches. We have proven this in categories where we have been present for a long time, such as roof top boxes, and in categories we have acquired such as multisport and bike trailers. Quad Lock is a global market leader in its niche and, like Thule, has a passion for creating the best products for active adventurers, with a strong focus on quality and innovation. Welcoming Quad Lock’s talented employees to the Thule family strengthens us in several areas and is a valuable step towards our financial targets for 2030; sales of SEK 20 billion and an EBIT margin of at least 20 percent.”

“We are excited to become part of the Thule Group,” said Andrew Poole, CEO of Quad Lock. “It’s striking how similar our brands and cultures are. Like Thule, we focus on high-quality products that can withstand harsh conditions and are appreciated by customers who love adventure. This market is growing rapidly, and we look forward to tackling the many growth opportunities together. As a management team, we also appreciate becoming Thule shareholders as part of this transaction and getting the opportunity to take part in the future value creation of our combined companies.”

Will this new single-handedly re-invigorate the Kickstarter cycle product trajectory? There’s money in them thar hills…