BikeBiz Bicycle and cycling retail news
Thule Group has signed an agreement to acquire Quad Lock, a global market leader in performance phone mount solutions, giving cyclists, motorcyclists and other adventurers access to their mobile phones while being active.
On sharing the news, Mattias Ankarberg, president and CEO of Thule Group stated: “We are taking Thule to the next level, and we are doing it by building on our strengths.
“Our profitable growth is driven by our ability to develop market-leading positions in attractive niches. We have proven this in categories where we have been present for a long time, such as rooftop boxes, and in categories we have acquired such as multisport and bike trailers.”
Quad Lock reports sales in approximately 100 countries, of which some 75% take place via e-commerce, direct-to-consumer.
Financials in review
Quad Lock, which has a turnover of SEK 1.4 billion (£10,024,840) with a 25% EBITDA margin, is said to fit well with Thule’s brand and strategy of developing market-leading positions in attractive niches.
The purchase price amounts to AUD 500 million (£255,262,500), or approximately SEK 3.6 billion, corresponding to a multiple of 10x EBITDA.
Quad Lock in detail
The business, which has its head office in Melbourne, Australia, started in 2011 when the two Australian founders invented a secure and user-friendly solution to mount mobile phones on their mountain bikes.
The product range has evolved rapidly and today Quad Lock is the global market leader in performance phone mounts with the broadest range of high-quality and robust solutions for biking, motorcycling, and off-road car enthusiasts.
Andrew Poole, CEO of Quad Lock. “It’s striking how similar our brands and cultures are. Like Thule, we focus on high-quality products that can withstand harsh conditions and are appreciated by customers who love adventure.
“This market is growing rapidly, and we look forward to tackling the many growth opportunities together – We are excited to become part of the Thule Group.”
As a management team, we also appreciate becoming Thule shareholders as part of this transaction and getting the opportunity to take part in the future value creation of our combined companies.”
The acquisition of Quad Lock is said to “help to strengthen Thule Group’s position in the Asia-Pacific region, where the acquisition increases the share of Thule’s sales from about 5% to 10%.”
Speaking to this, direct sales to consumers will increase from approximately 7% to 15% of sales. In addition, Thule will gain access to a customer base of motorcycle enthusiasts, which is Quad Lock’s largest segment, as well as expertise in electronics such as wireless charging of mobile phones on motorcycles.
Drivers for acquisition
Mattias Ankarberg, president and CEO of Thule Group: “Quad Lock is a global market leader in its niche and, like Thule, has a passion for creating the best products for active adventurers, with a strong focus on quality and innovation.
“Welcoming Quad Lock’s talented employees to the Thule family strengthens us in several areas and is a valuable step towards our financial targets for 2030; sales of SEK 20 billion and an EBIT margin of at least 20%.”
Image credit: Thule / Quad Lock
