A merger with sports e-commerce giant Signa Sports United means that CRCWiggle - the parent company of Chain Reaction Cycles and Wiggle - is now part of a publicly-traded retail group with $1.8 billion in annual sales, Bicycle Retailer and Industry News reported
SSU was recently acquired by Yucaipa Acquisition Corporation, a blank check company that allowed SSU to go public without going through the traditional IPO process. The Yucaipa Acquisition Corporation was already being traded on the New York Stock Exchange under the YAC symbol, and now the corporation will be traded under the symbol SSU
SSU, a German group, didn't have much stake in US bike sales until now, but still claims to be the world's largest online bike retailer, with ProBikeShop and Bikester making up a large portion of its sales. Neither ProBikeShop nor Bikester sells to the US. Still, the group is forecast to do $1.1 billion in sales without including CRCWiggle revenue.
As the group expands, it has its sights set on the US bike industry. Prior to the merger, SSU's revenue comes 96% from the EU and 4% from the UK. CRCWiggle is SSU's chance at a foothold in the US bike industry, and the group's Q3 investor presentation
indicates that the group plans to capitalize off the bike boom and especially the e-bike boom. CRCWiggle's revenue is 58% from the UK, 20% from the EU, 7% from the US, and 15% from the rest of the world, which SSU CSO called Phillipp Rossner calls
a "perfectly complementary geographic sales footprint" to what SSU has already established.
In a bid to "accelerate" sales in the US, SSU also recently acquired Midwest Sports and Tennis Express, both of which are US-based tennis retailers. With those acquisitions, SSU is expected to generate 9% of its revenue from US sales. 63% of its revenue is expected to come from the bike segment.
Rossner also noted that the online sports retail market is still highly fragmented and said that SSU will be further looking to consolidate and increase its stronghold.