Led by CEO Stephan Zoll, a former managing director of Ebay Germany, SIGNA Sports United (SSU), has entered into a business combination agreement with Yucaipa Acquisition Corporation.
This will see online e-commerce business SSU acquire WiggleCRC Group – with the combined group becoming a publicly traded company, targeting a listing on the NYSE in around three months.
WiggleCRC, one of the largest online bike retailers globally, is currently owned by private equity firm Bridgepoint.
SSU notes that its unique ecommerce platform differs from Amazon and Ebay as it ‘provides a bespoke experience catering to the needs of sports enthusiasts.’
The newly combined SSU will bring together online sports retail brands such as Wiggle, Chain Reaction Cycles, Fahrrad.de, Bikester, Probikeshop, Campz, Addnature, Tennis-Point, TennisPro, Outfitter and more.
‘The combined entity will become one of the largest pure-plays [in] sports e-commerce and technology platform companies worldwide, with expected net revenues of approximately US$1.6 billion in the financial year ending in September 2021, serving over 7 million active customers, 1,000+ brand partners, 500+ connected retail stores, and more than 15 million sports community users globally.’
SSU is part of Signa Holding, which is owned by Austrian investor Rene Benko, one of Europe’s largest real estate and retail firms. Yucaipa is a publicly-traded special purpose acquisition company led by Chairman and President Ron Burkle.
“We’re proud and excited by this next chapter in SSU’s growth story,” said Stephan Zoll, CEO of SIGNA Sports United. “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. Our focus on growth and internationalization coupled with our platform approach drives significant scale benefits.”
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. We look forward to becoming shareholders and partnering closely with the talented SSU team on this exciting journey.”
As a global leader in four online e-commerce categories: bike, tennis, outdoor and team sports, SSU notes that it has pursued a profitable growth strategy, investing to enter new markets and competing to establish leading positions.
Over the twelve-month period ending March 31, 2021, the company’s largest division, Bike & Outdoor, achieved an adjusted EBITDA margin of approximately 10% in its core DACH markets (Austria, Germany, and Switzerland).
It reported 40% growth in revenue compared to the prior year period; and in the rest of Europe, revenue growth exceeded 60% compared to the prior year period.
SSU adds that it is… ‘A leading pure-play sports e-commerce and technology platform with compounding data advantage, playing in the fastest growing sports categories in an approximately US$1.1 trillion global market, which is large, fast-growing and fragmented, driven by megatrends in health & lifestyle, digitalization, e-mobility and the continued shift to online.’
The new entity is expected to generate approximately US$1.6 billion of net revenues and more than US$70 million of adjusted EBITDA in the financial year ending in September 31, 2021 (in each case, pro forma, combined with WiggleCRC).
Yucaipa has agreed to combine with SIGNA Sports United and the WiggleCRC Group based on a US$3.2 billion pro forma enterprise valuation.
Upon completion of the transaction, the combined company will trade on the NYSE under the SIGNA Sports United name.
