KKR Cedes Accell Group to Lenders After €1.1bn Equity Write-Off

KKR has handed control of Accell Group to the Dutch bicycle manufacturer’s lenders, calling it quits on a deal that wiped out its initial equity contribution of more than €1.1 billion.

KKR acquired the owner of the Raleigh, Lapierre, and Babboe brands in 2022 for around €1.8 billion, running with the thesis that a recent boom in cycling and e-bikes was part of a long-term secular trend.

Instead, market growth proved fleeting, driven largely by a COVID sales bump as consumers avoided public transport and sought out alternative outdoor exercise options.

The handover, announced last Wednesday, is the second restructuring of Accell in just over a year.

As part of last week’s transaction, shareholders, including KKR, will inject roughly €30 million to keep the business running through the ownership transition, according to people familiar with the matter.

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 in place.

Like other COVID-related demand forecast miscues, bicycle manufacturers that had ramped up production found themselves sitting on bloated inventories, forcing heavy discounting across the industry.

KKR wasn’t alone in its misread of the durability of pandemic cycling trends. Investment firm GBL wrote down its stake in German bike manufacturer Canyon by 43 percent in 2024, and leadership at brands like Specialized and Pinarello have also discussed post-pandemic financial challenges of their own.

At Accell, however, the situation may have been even worse than that of struggling peers. The company had been more aggressive in its efforts to stay stocked, dramatically over-ordering components during the pandemic supply chain upheaval. The subsequent discounting and inventory write-offs killed the company’s revenue and margins, while financing costs rose as rates increased.

An untimely safety recall at the Babboe brand didn’t help. Dutch authorities ordered Accell to recall more than 20,000 three-wheeled cargo bikes designed to transport children—an immediate financial hit plus a lengthy period with an important product off the market.

By mid-2023, KKR and fellow shareholder Teslin were already extending emergency loans to the company. Across several cash infusions, the new money eventually totaled around €300 million—capital that has now been wiped out alongside the original equity.

In early 2025, KKR negotiated an initial restructuring agreement that cut Accell’s debt by roughly 40 percent to €800 million, extended maturities to 2030, and brought in a total of €235 million in new money from lenders and shareholders. The company also drew €100 million in super-senior financing.

That deal allowed KKR and Teslin to retain control, against objections from some of the company’s creditors. Lenders holding around 17 percent of the debt voted against it, and two complained that allowing shareholders to maintain ownership while creditors took writedowns was inequitable.

Ultimately, the deal only kicked the can down the road. The prolonged industry downturn, acknowledged CFO Mohammed Hassan in last week’s announcement, “undermined the impact” of last year’s salvage attempt.

Lenders, who have already taken significant losses, are now stuck running a business in an industry that still shows few signs of recovery.