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In the bicycle trade, Signa Sports is expanding its market share by going public
Photo: Signa Sports United
The sports online retailer Signa Sports United (SSU) wants to merge with a SPAC and go public on the New York Stock Exchange via this detour. The Berlin company, which operates Internet shops such as Fahrrad.de, Tennis Point, Campz or Outfitter, confirmed a report by the Reuters news agency with its announcement. By merging with the Yucaipa Acquisition Corporation, the new company will be valued at around 3.2 billion US dollars (2.6 billion euros). Yucaipa brings in $ 345 million in equity, plus SSU will receive $ 300 million from a capital increase from investors participating in the SPAC transaction.
A SPAC ("Special Purpose Acquisition Company") is a previously listed corporate shell that merges with an unlisted group.
The only goal of SPACs is to take over an operational company and thereby help it to be listed on the stock exchange.
Experts consider such transactions to be particularly risky given the high level of uncertainty for investors.
The IPO made it possible to gain further market share in Europe and to accelerate international expansion, explained SSU boss Stephan Zoll.
The company will use part of the proceeds to purchase the British online bicycle retailer Wiggle, which has annual sales of around $ 500 million.
Its owner, the financial investor Bridgepoint, will also become a shareholder in SSU as part of the deal.
As a result, the online retailer is about four times the size of the Dresden competitor Bike24, which is currently aiming for the Frankfurt floor. The online trade in sporting goods, including bicycles, has grown rapidly in the corona crisis. The global sporting goods market is estimated at more than $ 1 trillion a year.
SSU actually wanted to go public on the capital market via a traditional IPO in 2018, but then decided on a private financing round. Since then, the Japanese retail group Aeon and the Asian Central Group as well as the German R + V insurance group have been involved. They all remain shareholders after the SPAC transaction. Around 50 percent of the company will belong to the Signa group of companies owned by investor Rene Benko. The Austrian's group includes numerous properties as well as the Galeria Karstadt Kaufhof department store group.
According to its own information, SSU is the world's largest pure online sporting goods retailer and operates more than 100 internet shops in 20 countries with over seven million online customers every year.
Including the most recent acquisitions, the company expects operating profit of approximately $ 70 million and sales of $ 1.6 billion for the 2020/21 fiscal year ending in September.
Revenues are expected to grow by more than 25 percent annually over the next five years.
The profit margin is expected to triple to 12 to 15 percent in the long term.
nek / dpa / reuters
