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Deal worth £100 million would see group turnover approach half a billion pounds

Online cycling retailer WiggleCRC is reportedly set to buy Germany-based Bike24 in a deal said to be worth more than £100 million, according to The Sunday Times.

The acquisition would see the group, formed last year through the merger of Wiggle and Chain Reaction Cycles, grow its presence in Germany, Austria and Switzerland, which are Bike24’s key markets.

The deal, if it goes through, would result in the group’s turnover heading towards half a billion pounds.

Last month, WiggleCRC said that annualised sales for the 52 weeks ending 1 January 2017 would have been £370 million had Chain Reaction been included for the entire period, while Bike24 has yearly turnover of €85 million (£76 million).

> Local bike shops look away now - reports of worsening losses at Wiggle are exaggerated

It would also result in the business making a significant increase in the amount of turnover it generates outside the UK.

In the latest financial year, and including Chain Reaction Cycles from 7 July 2016 – the day the merger completed – 47.6 per cent was derived from the UK and 19.2 per cent from Europe, with Rest of World accounting for the remaining 33.3 per cent.

Born in Scotland, Simon moved to London aged seven and now lives in the Oxfordshire Cotswolds with his miniature schnauzer, Elodie. He fell in love with cycling one Saturday morning in 1994 while living in Italy when Milan-San Remo went past his front door. A daily cycle commuter in London back before riding to work started to boom, he's been news editor at road.cc since 2009. Handily for work, he speaks French and Italian. He doesn't get to ride his Colnago as often as he'd like, and freely admits he's much more adept at cooking than fettling with bikes.

11 comments

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stevio1967 [47 posts] 4 weeks ago
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Brexit insurance or just a good business opportunity???

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Spangly Shiny [153 posts] 4 weeks ago
1 like

Brexit insurance for sure.

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BehindTheBikesheds [866 posts] 4 weeks ago
3 likes

Bugger, I used Bike24 loads, still good deals to be had even with the £7 postage (though if more than €100 it's free IIRC.

Can't see the good deals lasting with this lot in charge.

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matthewn5 [1069 posts] 4 weeks ago
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Yeah, Bike24 were great, very keen prices.

My guess is after the Wiggle deal they'll refuse to ship to the UK. Isn't that the way Wiggle.de works on items that are cheaper than the UK store?

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rnick [139 posts] 4 weeks ago
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They'll simply play the international distributors off against one another & source from whom ever is the cheapest cross border,  month 1 UK, month 2 Germany, month 3 Ireland.    The consumer may benefit...but the suppliers will be butchered.  The € / £ FX adds some spice to the mix.

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me [92 posts] 4 weeks ago
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This is bad news.  Bike24 were great.  Sometimes us Brits want to buy stuff that seemingly only Europeans have - headlights with a properly shaped beam, chaincase to cover the chain on the town bike, etc.  1 less choice now.

Wiggle+CRC are the B&Q of the cycling world.  Sell half of what you need for a job, claim to be cheap while being mostly expensive and sell the big ticket items but no spare parts.  Long since given up with the lot of them.

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bendertherobot [1472 posts] 4 weeks ago
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me wrote:

This is bad news.  Bike24 were great.  Sometimes us Brits want to buy stuff that seemingly only Europeans have - headlights with a properly shaped beam, chaincase to cover the chain on the town bike, etc.  1 less choice now.

Wiggle+CRC are the B&Q of the cycling world.  Sell half of what you need for a job, claim to be cheap while being mostly expensive and sell the big ticket items but no spare parts.  Long since given up with the lot of them.

So, they're the most expensive and don't have what you need. So, you just go to SJS? Right?

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hsiaolc [367 posts] 4 weeks ago
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definitly not good news for the consumer.  I already don't like it when they acquired Chainreaction.  

Want to be a Monopoly? 

Consumer suffer in the end. 

 

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BehindTheBikesheds [866 posts] 4 weeks ago
0 likes
bendertherobot wrote:
me wrote:

This is bad news.  Bike24 were great.  Sometimes us Brits want to buy stuff that seemingly only Europeans have - headlights with a properly shaped beam, chaincase to cover the chain on the town bike, etc.  1 less choice now.

Wiggle+CRC are the B&Q of the cycling world.  Sell half of what you need for a job, claim to be cheap while being mostly expensive and sell the big ticket items but no spare parts.  Long since given up with the lot of them.

So, they're the most expensive and don't have what you need. So, you just go to SJS? Right?

The last time I bought something from CR was about 6-7 years ago though I did buy some wheels from Wiggle's outlet store on Ebay this year.
I've purchased more often from bike24 than I have ever CR and wiggle combined, CR rarely sell the spares you need, SJSdo, that's a fact. There are other online sellers that also sell certain spares that most of the big lot don't including a few on ebay.
This is because the vast majority of bike shops are like Halfords but without the lower range bikes. Sure they've got some good wrench's in the back but so few stores still in business have the bits and bobs in stock that those not riding an identikit bike need.
CRand Wiggle also fall down in that.
Even at 1.12 €/£ there's bargains and other bits to be had, being taken over by the likes of CRC/Wiggle doesn't bode well for UK buyers as mentioned

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darrylxxx [86 posts] 4 weeks ago
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stevio1967 wrote:

Brexit insurance or just a good business opportunity???

Both. It's a private equity firm consolidating the main players in preparation of floating or a big sale stripping out duplications and costs along the way.

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fluffed [48 posts] 4 weeks ago
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Never actually used bike24, but pricematched pretty much everything I got from Wiggle through them, that's gone for a burton now though.