German online retail group Signa Sports United (SSU) has announced the acquisition of Portsmouth-based online bike retailer WiggleCRC, as part of a $3.2bn (£2.26bn) transaction with Yucaipa Acquisition Corporation.
Through the deal, SSU will also acquire the Wiggle-owned Northern Irish retailer Chain Reaction Cycles.
Upon completion of the combination with Yucaipa, a special purpose acquisition company (spac), the group is set to trade on the New York Stock Exchange under the SSU name, meaning Wiggle will be listed publicly on the NYSE.
SSU, the owner of bike, tennis, outdoor, and team sports brands, claimed that it expected to see net revenues rise to approximately $1.6bn (£1.13bn) in FY21 as a result of the deal.
Stephen Zoll, CEO at SSU, said: “Becoming a listed company allows us to continue capturing market share in Europe and to accelerate our US and international expansion while scaling our platform solutions.
“We also look forward to welcoming WiggleCRC to our SSU family. The acquisition enhances our global online leadership especially in the bike category.”
The transaction will encompass up to $645m (£455m) in gross proceeds, including a cash consideration of approximately $345m (£244m) to Yucaipa and an upsized PIPE of roughly $300m (£212m).
Moreover, Bridgepoint, the majority owner of Wiggle, is set to receive part of the purchase consideration in shares of the newly combined company.
Ron Burkle, chairman and president of Yucaipa, said: “SSU is a global leader in the fastest-growing sports categories and is well-positioned for continued success as a public company.
“With its technology platform – and a combination of scale, international growth and profitability – we expect SSU to grow its leadership positions and accelerate its global expansion.”