New Owner of Chain Reaction Cycles & Wiggle Goes Public, $ 1 Billion Corporation Targets US Bike Industry
SSU was recently acquired by Yucaipa Acquisition Corporation, a blank check company that allowed SSU to go public without going through the traditional IPO process. The Yucaipa Acquisition Corporation was previously listed on the New York Stock Exchange under the symbol YAC, and now the company will be listed under the symbol SSU.
SSU, a German group, didn’t have much of an interest in US bike sales until now, but still claims to be the world’s largest online bike retailer, with ProBikeShop and Bikester making up a large part. of its sales. Neither ProBikeShop nor Bikester sells in the United States. Still, the group is expected to achieve a turnover of $ 1.1 billion without including the revenues of CRCWiggle.
As the group grows, it targets the American bicycle industry. Before the merger, 96% of SSU’s revenue came from the EU and 4% from the UK. CRCWiggle is SSU’s chance to gain a foothold in the bicycle industry in the United States, and the group’s third quarter investor presentation indicates that the group plans to capitalize on the bicycle boom and in particular the electric bicycle boom. . CRCWiggle’s turnover is 58% UK, 20% EU, 7% US and 15% Rest of the world, what SSU CSO called Phillipp Rossner calls a “geographic footprint of perfectly complementary sales âto what SSU has already established.
In an effort to “accelerate” sales in the United States, SSU also recently acquired Midwest Sports and Tennis Express, both of which are United States-based tennis retailers. With these acquisitions, SSU is expected to generate 9% of its sales revenue in the United States. 63% of its turnover is expected to come from the bicycle segment.
Rossner also noted that the online sports retail market is still very fragmented and said SSU will look more to consolidate and increase its dominance.