Major merger! Wiggle & Chain Reaction to create multi-million ‘global online champion’
Wiggle and Chain Reaction Cycles have both confirmed today that they are to merge to ‘further strengthen their position in the global online retailing world of cycling, running, swimming and triathlon (tri-sports) products and accessories.’
The transaction is subject to a number of regulatory approvals, including merger control clearance from the Competition and Markets Authority (CMA).
A release states that ‘Together the combined business will be able to supply a broader offering and a stronger platform with which to attract new brands and compete in the wider cycling and accessories market. Financially, the combined business will have revenues in excess of £300 million [US$434m / €385m].’
Stefan Barden, Chief Executive Officer of Wiggle, said “In the global online retailing market in which we operate, there is a compelling industrial logic for our two businesses to come together to become a stronger force. We have long respected Chain Reaction Cycles as a business and share its values and commitment to delivering the best possible price and first class service for its customers.”
He continued, “Like us they have a deep seated love of cycling. The combined business will offer all customers an extended range of brands and products, with Wiggle’s strength in tri-sports and road cycling complemented by Chain Reaction Cycles’ strength in mountain biking, BMX and road cycling too.
“The deal propels Wiggle faster towards its objective of building a global online champion and a major British export success story.”
Chris Watson, Managing Director of Chain Reaction Cycles, said “This is an exciting new chapter for the Chain Reaction Cycles brand. Since the business started in 1984, we’ve grown strongly from our mountain bike origins in Northern Ireland to meet the needs of more MTB, BMX and road cyclists across more countries. Coming together with Wiggle is a great way to continue that growth, as a global force in cycling and a leader in technology, eCommerce and innovation.”