Target Information

Ekosport has announced its acquisition of SkiWebShop, the leading Dutch online retailer of winter sports equipment. Established in 2005 by Vladimir Bashev and Margo Crooijmans, SkiWebShop specializes in the online distribution of mountain sports articles, predominantly winter apparel but also skiing equipment and accessories. The company, headquartered in Breda, the Netherlands, boasts a robust portfolio of over 10,000 references from 90 reputable brands, including popular local names such as Icepeak, Dare2b, Kilpi, Spyder, and Luhta. SkiWebShop is expected to generate €11 million in revenue this year, reflecting a historical annual growth rate of 35% since 2021.

Industry Overview in the Netherlands

The Dutch e-commerce landscape has seen significant growth, especially in the outdoor and sports segments, driven by a rising interest in health and fitness activities among the population. The ski and winter sports market has witnessed a surge with increased participation in winter sports and events, further supported by the booming online shopping trend. The convenience and accessibility of online platforms have accelerated the shift from traditional retail to e-commerce, allowing companies like SkiWebShop to thrive.

Given the Netherlands' strong infrastructure and digital economy, companies in the outdoor sector have ample opportunities for expansion. The competitive environment encourages brands to innovate and adapt to consumer needs, ultimately fostering market growth. Additionally, the European Union's single market further facilitates cross-border trade, enabling Dutch companies to reach additional markets effortlessly.

As environmental concerns continue to shape consumer preferences, companies in the sporting goods sector are increasingly focusing on sustainability. This shift presents opportunities for businesses that emphasize eco-friendly products and practices, allowing them to capture the attention of socially-conscious consumers. Moreover, the emphasis on outdoor activities has been compounded by the ongoing trend of remote work that incentivizes people to seek leisure and recreational opportunities in nature.

Rationale Behind the Deal

This acquisition represents a strategic move for Ekosport to enhance its European presence, particularly in the Benelux and DACH markets. By incorporating SkiWebShop into its portfolio, Ekosport aims to fortify its position as a leading omnichannel distributor of outdoor sports products. The company envisions reaching €200 million in revenue over the next three years, with more than one-third of that expected from international ventures.

Furthermore, the combination of SkiWebShop's market expertise in the targeted regions with Ekosport's established operational strengths is anticipated to create significant synergies. This integration will not only broaden product offerings but also improve service delivery and customer experience, enhancing brand distinctiveness in a competitive market.

Investor Information

The acquisition is backed by IDI and Garibaldi Participations, alongside the management team led by new CEO Frédérick Herbst and historical partners Yannick Morat and Franck Wesse. IDI has played a crucial role in facilitating this international expansion, aligning with Ekosport's growth strategy and providing financial support for continuous development. Garibaldi Participations' involvement further enhances the strategic investment, ensuring valuable insights and added resources for future endeavors.

IDI's strategy focuses on a buy-and-build approach that aims to strengthen Ekosport's leadership position in the European market. With growing demand for preferred distribution channels by prominent outdoor brands, this acquisition underscores IDI's commitment to fostering robust partnerships that enhance competitive advantage. The involvement of multiple financial institutions, including Banque Populaire Auvergne-Rhône-Alpes and Caisse d’Epargne Rhône-Alpes, indicates strong confidence in the merger's future success.

View of Dealert

This acquisition appears to be a strategically sound investment for Ekosport, leveraging SkiWebShop's established presence in the Netherlands and component expertise in the winter sports market. The anticipated synergy between the two companies is substantial, given that both share a commitment to outdoor sports and customer satisfaction. Thus, this union is likely to boost Ekosport's brand visibility and market penetration in previously underserved regions.

Moreover, the upward trajectory of the e-commerce sector in the Netherlands aligns well with the broader trends favoring online shopping and outdoor activities. Ekosport’s robust growth targets and investment in physical store expansion, such as its flagship in Paris and forthcoming openings in Marseille and Paris, further exhibit the strategic growth plan post-acquisition. This multifaceted approach fortifies the investment thesis.

The financial growth indicators of SkiWebShop, coupled with the management team’s vision to enhance operational capabilities, suggest that this deal will yield positive returns. As Ekosport seeks to diversify its revenue streams and extend its product offerings, this acquisition represents a proactive step toward achieving its ambitious three-year growth objectives.

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