Duell has agreed to acquire UK based TranAm
Mustasaari, Finland based Duell Corporation has acquired 100 percent of the share capital in respected UK based importer and distributor TranAm - a leading player in the UK market with a strong reputation in the premium motorcycle apparel and accessories sectors.
A latest stage in Duell's growth strategy in support of its geographical expansion and brand portfolio development, "the acquisition significantly strengthens Duell's foothold in the large UK market and provides a platform for future growth.
"Through the acquisition, Duell will gain access to the most important retail chains in the UK and can achieve cross-selling synergies by utilising TranAm's wide dealer network to sell selected Duell house brands. Additionally, Duell expects to achieve post-Brexit operational benefits by delivering products directly to and from TranAm's UK warehouse.
"In total, the acquisition is expected to bring annual cost synergies of around € 200,000, which are expected to be realised within 12 months of the closing of the transaction. Duell acquires the entire share capital and full voting rights of TranAm for a total purchase price of £11.875m.
"TranAm has a strong balance sheet with a net cash position and high profitability, which, combined with the contemplated equity issue to finance the acquisition, strengthens Duell's financial position."
Founded in 1976, TranAm had net sales of £10.7m and EBITA of £2.1m in fiscal year ending March 31, 2022 (unaudited, according to UK GAAP). TranAm offers its products to over 400 dealers.
The motorcycle category represents over 90% of sales, while simultaneously the company also has a smaller offering of ski, snowboarding and pet accessories. TranAm currently employs 28 people and has its office and warehouse in New Milton, UK. The business was built and is owned by the Lloyd family. Duell plans to merge TranAm's operations with its existing UK operations.
Pete Lloyd, TranAm's Managing Director and one of its current owners, will continue to head the operations after the acquisition.
Jarkko Ämmälä, CEO of Duell, said: "I am very pleased that we can significantly strengthen our market position in the UK. The acquisition of TranAm provides us with fast access to the large UK market and a strong foothold to further grow our business by also bringing our own brands to a wide range of consumers in the UK through TranAm's existing distribution channels. TranAm has been very successful with motorcycle clothing business."
Pete Lloyd commented: "I am delighted to join our forces with Duell to grow our business jointly and as part of one of Europe's leading powersports wholesalers. I believe we will achieve significant sales synergies by offering a more comprehensive product portfolio to our established customer base."
The acquisition will have no impact on Duell's financial outlook for the financial year 2023 or on the company's medium-term financial targets.
