BY Richard Summerfield
Signa Sports United has reportedly agreed to list on the New York Stock Exchange (NYSE) through a merger with a blank cheque company, in a deal valuing the firm at $3.2bn.
The deal will raise $645m in proceeds for Signa Sports, made up of $345m from special-purpose acquisition company (SPAC) Yucaipa Acquisition and another $300m from investors through a private investment in public equity (PIPE). The transaction has been unanimously approved by the boards of directors of each of Signa Sports and Yucaipa Acquisition and is subject to approval by Yucaipa Acquisition’s shareholders and other customary closing conditions.
The transaction is expected to close in the second half of 2021. Upon completion, the combined company will trade on the NYSE under the Signa Sports United name.
As part of the deal, Signa Sports will also acquire UK-based online rival Wiggle from its private equity owners. Wiggle generates annual sales of about $500m. The combined company is expected to generate net revenues of approximately $1.6bn in the financial year ending in September 2021, serving over seven million active customers.
“We’re proud and excited by this next chapter in SSU’s growth story. 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,” said Stephan Zoll, chief executive of Signa Sports. “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.”
“SSU is a global leader in the fastest-growing sports categories and is well-positioned for continued success as a public company,” said Ron Burkle, chairman and president of Yucaipa. “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.”
The deal is another in an increasingly long line of recent SPAC transactions. SPACs have become a popular alternative to the traditional IPO process for companies looking to list on a stock exchange, accounting for nearly half of the more than $200bn raised globally in new listings over the past year.
News: Signa Sports agrees SPAC deal, to buy Wiggle bicycle store - source