Wiggle to takeover online rival Chain Reaction

Fri, 12 Feb 2016 | BUSINESS SALE

Wiggle, the largest online retailer of bikes and cycling equipment, is in the final stages of a takeover bid for its closest rival, Chain Reaction Cycles.

The two companies have been engaged in a battle for online sales for years. However, the move is significant for the bike shop industry, as the proposed merger of the two biggest online outfits would undoubtedly mean that bricks and mortar stores would have trouble competing against ever-lower online prices.

Speaking to The Times, Michael Oliver, senior leisure and media analyst at Mintel, said: “It is hard to see the business case, other than to take a competitor out of the marketplace.

“I think the independent bike trade will be quite worried about this.”

Wiggle started out in Portsmouth as Butler Cycles, changing its name to Wiggle Cycles in 1999. The business moved online exclusively and saw sales increase significantly. In 2011 the company was bought by Bridgeport Capital for £180 million.

Wiggle’s turnover reached £179.2 million in 2015 and the company has trebled the size of its distribution centre since moving to Wolverhampton.

Chain Reaction Cycles began as a family-run bike shop, based in Doagh, County Antrim, in 1985. The founders, George and Janice Watson, moved the business online in 1999.

Turnover at Chain Reaction Cycles hit £153.2 million last year. The company currently employs more than 600 people, according to The Times.

A spokesman for Chain Reaction Cycles told the BBC that the takeover is “speculation at this point”.


View other businesses for sale.


Share this article



Latest Businesses for Sale

Natural Stone Supply Company: Sourcing/Processing/Distribution
Aberdeenshire, Scotland, UK

This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. Offers invited.

Asking Price: £1,050,000
Turnover: £1,100,000

RELOCATABLE


Precision Engineering Business
North West, UK

Precision Engineering Business for sale operating with a modern, well equipped machine shop, offering Engineering Development Modelling (EDM), CNC turning & milling, grinding, boring and fitting. Offers invited.

Asking Price: Offers Invited
Turnover: £400,000

LEASEHOLD


Accountancy Business
UK Wide

High quality practice with strong middle management on the market for the first time. Established: 25 to 30 years. Strong middle-tier management to support acquirer throughout the transition period and on an ongoing basis. Locations: Cheshire, Mersey...

Asking Price: £1,300,000
Turnover: £1,300,000


View more businesses for sale

News Search

Latest News

 
19
 
Sep
 

Smith & Williamson and Tilney to merge | MERGER

After revealing in August this year that talks were in place...

 
18
 
Sep
 

Infrastructure investment manager takes stake in LJLA | BUSINESS SALE

Infrastructure investment management group, Ancala Partners,...

 
17
 
Sep
 

Impact REIT snaps up Suffolk-based Cardinal Healthcare business | BUSINESS SALE

Impact REIT has successfully acquired Cardinal Healthcare, a...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources