Derby Cycle AG

EANS-News: Derby Cycle AG: Sales company founded in Australia

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Mergers - Acquisitions - Takeovers

Subtitle: - Direct sales as the starting base for further growth in the
attractive Australian market 
- Asset deal: Newly-founded company Derby Cycle Australia Pty Limited acquires
assets from Green Apple Sports Limited

Cloppenburg (euro adhoc) - Cloppenburg, June 27, 2011 - Derby Cycle AG (ISIN
DE000A1H6HN1, WKN A1H6HN), Germany's largest bicycle manufacturer in terms of
sales, founded Derby Cycle Australia Pty Limited on April 21, 2011, and, with
the completion of the asset deal with Green Apple Sports Limited, is launching
direct sales in Australia as of this date. 

This sales company is a full subsidiary of Derby Cycle AG. The Australian market
has been served via a distributor to date, Green Apple Sports Limited. The newly
founded company Derby Cycle Australia Pty Limited will sell directly to
customers on a local basis, by contrast. To this end, the company has acquired
inventories and customer receivables from Green Apple Sports Limited, thereby
creating an excellent starting basis for further growth in Australia. A
confidentiality agreement relates to the purchase price. Graeme Moffett, who has
been the owner and Managing Director of Green Apple Sports to date, will manage
Derby Cycle's business in Australia as Managing Director. 

Mathias Seidler, CEO of Derby Cycle AG, commented on the company's entry into
the Australian market as follows: "Around 1.2 million bicycles are sold in
Australia per year, the value of the Australian bicycle market is estimated to
be approx. one billion Australian Dollars per year at retail level. The
Australian market is particularly distinguished by strong demand in the sports
segment. As a consequence, we are currently selling high-quality racing bikes
and mountain bikes from our FOCUS brand in Australia."

Uwe Bögershausen, CFO of Derby Cycle AG, went on to add: "With our entry into
direct sales in Australia, the internationalisation strategy that we presented
as part of our IPO is gathering further momentum. We will continue to drive
further ahead with this strategy in the future."

Company profile:
Derby Cycle is a Germany's largest bicycle manufacturer in terms of revenues,
and one of the leading manufacturers in Europe. In particular, global demand
growth for high-quality electric and sports bicycles, as well as the company's
advancing internationalisation in all European volume markets, are reflected in
the company's dynamic growth. Derby Cycle's product range comprises electric
bicycles, sports bicycles for leisure and competition purposes, as well as
comfort bikes for everyday and travel use. These bicycles are sold through the
established Kalkhoff, Focus, Raleigh, Univega and Rixe brands. All models are
developed and assembled at the company's base in Cloppenburg, Germany. These
high-quality products are distributed through specialist retailers who provide
their customers with professional advice and extensive service.

With an around 550 employees, Derby Cycle achieved revenue of EUR 173 million in
the 2009/2010 and financial year, 72.6 percent of which was generated in
Germany, and 27.4 percent abroad. Earnings before interest and tax (EBIT)
amounted to approximately EUR 12 million. Derby Cycle sold a total of around
430,000 bicycles, of wet leadership in 2010 with a 20 percent market share. The
company forecasts revenues of EUR 220 million to 240 million, and an EBIT margin
of 8 to 9 percent (2009/10: 7.0 percent) for the 2010/11 financial year that
ends on September 30, 2011.

Further information is available at:

Further inquiry note:
cometis AG 
Unter den Eichen 7 
65195 Wiesbaden

Henryk Deter / Dominic Großmann
Telefon: +49 (0)611-20 58 55-15

end of announcement                               euro adhoc 

company:     Derby Cycle AG
             Siemensstr. 1-3
             D-49661 Cloppenburg
phone:       +49-4471-966-238
FAX:         +49-4471-966-44820
sector:      Consumer Goods
ISIN:        DE000A1H6HN1
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
             Hamburg, Stuttgart, Düsseldorf, München 
language:   English

Weitere Meldungen: Derby Cycle AG

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