PON sells its 20% stake in the Accell Group

Local media in the Netherlands are reporting that the Wijnand PON, parent to Kalkhoff and Santa Cruz, among others, has sold its 20% stake in the Accell Group, bought in 2018 at a time when a takeover bid was mooted.

The sale of 1.7 million shares is worth nearing €44 million at the price per share of €26.15. At the time of purchase PON was able to buy in at a price of €15 and it is reported that with exchange rate gains the profit taken has been bolstered.

When PON began circling the Accell Group with a view to purchasing the business outright a disagreement in the value of the business ultimately halted talks that were confirmed to have taken place. At the time PON was reported to be willing to pay €33.72 per share, which represents marginally more than the all time high value of the share price, hit that year.

According to regulatory documents lodged in the Netherlands a new party with interest in taking up the stake in the business has been notified. At the time of writing, despite registering a dip this morning, the Accell Group share price is largely flat for the day suggesting investors have been quick to back the business at a time when the bike industry is enjoying good returns in the face of the Coronavirus pandemic.

Accell’s share price has rebounded from its year low by more than 100% since the markets crashed in March this year. The Raleigh parent has recorded strong revenues to date this year, revising up its annual forecast as a result. As with all others in the bike industry, the challenge now is to fill a gap in supply for its extensive dealer network across Europe. Tighter measures on Accell’s assembly lines currently remain in place in order to keep staff safe as the pandemic rages on.