After last year’s takeover of its compatriot Void Cycling, the up-and-coming backpack specialist USWE Sports AB has now signed an agreement to take over the young US company Giant Loop LLC. The deal also includes the acquisition of Armadillo Bag LLC, another brand developed by Giant Loop and its founders. The takeover of »the softbag supplier for off-roaders« is expected to be completed on July 1, 2022.
The agreed purchase price is approximately SEK 30 million (EUR 2.8 million) – »of which approximately SEK 15 million (EUR 1.4 million) in cash and approximately SEK 10 million (USD 0.9 million) in the form of newly issued USWE shares to be paid upon completion of the transaction.” The remaining part of the agreed purchase price of approximately SEK 5 million (EUR 0.5 million) will be paid in July 2024.
In addition to the fixed purchase price, the seller may receive a conditional purchase price payment of up to approximately SEK 10 million (EUR 0.9 million). This is tied to the achievement of certain sales and profit development targets by June 30, 2024.
Giant Loop LLC (annual sales 2021: 3 million USD = 2.8 million euros) was founded in 2008 by CEO Harold Olaf Cecil. The portfolio offers soft bags for two-wheelers (with a focus on off-road motorcycles). Production takes place both in California and in Asia. The sale takes place via an omnichannel model with own e-commerce, Amazon and sales as the main channels. Giant Loop founder and CEO Harold Olaf Cecil will lead the eight-strong team in Bend for at least two years. He will also become a major shareholder in USWE Sports.
»Giant Loop is a perfect partner for USWE in the United States…We share customer segments, values and approaches to product development and design. Our respective product lines complement each other perfectly, with USWE standing for gear ‘for the rider’ and Giant Loop for gear ‘for the bike’. So far, Giant Loop has mainly developed its soft bags for off-road motorcycles. We also see great potential for the development of luggage and bags for e-bikes, mountain bikes and gravel bikes. The boundaries between motorcycles and bicycles are blurring. We want to offer the best in gear for ‘the new bikes’ and ‘the new riders’. Giant Loop’s headquarters is located in Bend, Oregon, an ideal location for USWE’s continued expansion into the outdoor segment…We have identified several synergies in sales, distribution and manufacturing that we are now looking to realize. I am confident that this acquisition will significantly strengthen both Giant Loop and USWE,” said USWE Sports CEO Jacob Westerberg.
The location in Bend/Oregon will also serve as a hub for USWE’s further advance into the North American market. In addition, the soft packs of both US brands will soon be available through the Swedes’ global sales network.
Text: Jo Beckendorff / USWE Sports, Photo: Giant Loop
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