Holland-based Accell bought one of Britain’s oldest and most iconic bicycle brands, Raleigh Cycle, for £62m.
Famous for bike models like the Chopper and the Vektar, the Nottingham-based company has made bicycles for 125 years. The deal with Accell is expected to be finalised at the end of May.
Raleigh employs 430 people worldwide (many of the bikes are manufactured in the Vietnam and Bangladesh). Although production in Nottingham was stopped in 2002, over 100 staff are still based in the city where the firm was founded.
In 2001, CEO Alan Finden-Crofts led a management buyout supported by a private equity fund that saved the company. Commenting on the acquisition by Accell, he said: “It’s a sad day, but we had an offer we couldn’t refuse.”
Jonathan Buxton, partner at Cavendish Corporate Finance, which advised on the deal, commented: “Raleigh is one of the very few examples of a UK company which has successfully migrated from a pure manufacturing model into a global brand; boosting international sales, particularly in North America, and with a fast growing presence in Asia.”
Raleigh sold 850,000 bicycles last year.
Photo by Tejvan Pettinger