KKR’s acquisition of Accel Group was a pandemic bet on a bike boom. It didn’t pay off, and now the private equity firm is handing the business over ...
TL;DR
KKR acquired Accell Group in 2022 betting on a post-pandemic bike boom, but industry downturns led to losses. The firm is now transferring its stake to lenders in a debt restructuring to stabilize the company's finances.
KKR’s acquisition of Accel Group was a pandemic bet on a bike boom. It didn’t pay off, and now the private equity firm is handing the business over to its lenders.
KKR’s Pandemic Bet on Accell Group Fizzles as Private Equity Firm Transfers Stake to Lenders
In 2022, U.S. private equity firm Kohlberg Kravis Roberts & Co. (KKR) acquired Netherlands-based bike manufacturer Accell Group for €1.56 billion, betting on a post-pandemic surge in cycling and e-bike adoption across Europe. However, a prolonged industry downturn, supply chain disruptions, and oversupply have eroded demand, forcing KKR to hand over its equity stake to senior lenders in a debt restructuring agreement announced February 18, 2026.
The deal, which transfers control of Accell to its existing super senior lenders, aims to reduce the company's debt burden and stabilize its financial position. Under the terms, lenders will assume ownership in exchange for new funding and extended maturities, while KKR and other equity holders relinquish their shares. This follows a prior restructuring in October 2024, which cut debt by 40% to €800 million and injected €235 million in fresh capital.
Accell's sales declined 22% in 2024, driven by aggressive discounting and weak consumer demand, with Fitch Ratings projecting further revenue declines of 15% in 2025 and 9% in 2026 before a potential recovery in 2027. EBITDA losses, estimated at €350 million to €400 million over 2023–2024, are expected to narrow significantly in 2025 and reach break-even by 2026.
KKR attributed the setback to unforeseen market conditions, including a global slowdown in e-bike and road bike demand. "The prolonged downturn faced by the entire industry post-COVID had a material impact," said Accell CFO Mohammed Hassan. The firm emphasized its support for operational improvements, including cost-cutting and centralized management under its "One Accell" strategy.
With the new ownership structure, Accell's management team, led by CEO Jonas Nilsson, aims to focus on long-term transformation. "This agreement is a major milestone in achieving the exciting potential of our portfolio of iconic brands," Nilsson stated. The transition is expected to finalize in the coming weeks.
The restructuring underscores the risks of sector-specific private equity bets amid volatile market conditions, as KKR exits a once-promising investment in the sustainable mobility sector.
