Dutch bicycle maker Accell Group is looking for supply chain savings of 2-3 million euros a year as a result of the takeover of Raleigh.
Accell is paying 60m euros for Raleigh, the Nottingham based cycle maker which has a global presence with its Raleigh, Diamondback, and Avenir brands.
Raleigh has been active in the bicycle market for 125 years, and operates through production and distribution companies in the United Kingdom, the United States and Canada along with worldwide licensing activities and a sourcing company in Asia.
Access said it “expects to realise significant potential synergies in the fields of supply chain, sourcing in Asia, purchasing advantages through economies of scale and intensified distribution of the brands of Accell Group and Raleigh in their respective markets.
“It will be further investigated where combining Accell Group subsidiaries or activities with Raleigh business units or two activities makes sense. Accell Group currently envisages realising annual synergies of 2–3m euros in the course of two years.”
Accell chief René Takens said: “The acquisition will expand our activities to new geographical markets while benefiting from purchasing advantages through increased economies of scale. We have great confidence in Raleigh’s management team and will fully support future growth of Raleigh within our group.”