KKR has relinquished control of Accell Group, the Dutch bicycle manufacturer, to its lenders, resulting in the write-off of KKR's initial equity contribution of more than €1.1 billion. KKR had acquired Accell in 2022 for approximately €1.8 billion, betting on a sustained boom in cycling and e-bikes, a trend that ultimately proved fleeting and largely driven by a COVID-19 sales bump as consumers sought alternative transportation and outdoor exercise. This move comes after a second debt restructuring for Accell in just over a year.
The initial restructuring in early 2025 saw KKR negotiate a deal that cut Accell’s debt by roughly 40% to €800 million, extended maturities to 2030, and brought in €235 million in new money from lenders and shareholders, alongside €100 million in super-senior financing. KKR and fellow shareholder Teslin also injected approximately €300 million in emergency loans across several cash infusions by mid-2023, all of which has now been wiped out. Despite these efforts, Accell continued to face liquidity pressures, exacerbated by a prolonged industry downturn, over-ordering of components during the pandemic, and an untimely safety recall of Babboe cargo bikes.
In the latest transaction, shareholders, including KKR, will inject about €30 million to facilitate the ownership transition. Lenders agreed to write off approximately €850 million of 1.5-lien, second-lien, and holding-company level debt, with around €270 million of super-senior financing remaining. Accell's CFO, Mohammed Hassan, acknowledged that the prolonged industry downturn had undermined the impact of last year's salvage attempt. The transfer of control to the super senior lenders avoids insolvency or liquidation for Accell, but leaves lenders, who have already taken significant losses, running a business in a struggling industry.
