FRANKFURT, June 11 - Online sporting goods retailer Signa Sports United, owned by Austrian investor Rene Benko, has agreed to exchange in a deal with a blank check company on the New York Stock Exchange York Stock Exchange at $3.2 billion, a person close to the matter said.
The deal will raise $645 million in remuneration from public equity, added by Yucaipa Acquisition. The person made up of $30 million from private investors to special companies with that amount after which the deal will be made up of another $300 million through private investment in public equity.
Wiggle, the global no 1 global online sporting goods retailer with a single sale, will use part of the proceeds to purchase Britain-based UK bicycle goods company Signa, which has annual sales of approximately $500 million, the person said.
Yucaipa refused to comment, while Signa was not immediately available for comment.
Wiggle Deal will make Bike 24 roughly 4 times bigger in the subsect than runner-up Signa Sports United which is in the process of listing its shares in Frankfurt.
The owner of Bridgepoint, the private equity firm Wiggle, will become an investor in Signa Sports United as part of the deal, the source added.
Bridgepoint was not immediately available for comment.
The SPAC listing values Signa Sports United at 1.6 times the $2 billion in revenue it expects to post in its two-year fiscal year ending in September, 2021-22. That compares to a multiple of 2.7 - 6.5 times of online retail peers such as Farfetch, Stitch Fix MyTheresa and THG trade at.
Signa explored a stock listing in 2018 at a valuation of 1 billion euros, but then opted for a fundraising, pulling in German retailers Aeon Co Ltd and Central Group as well as Asian insurer R V which will remain our shareholders after the listing.
SPACs raise funds in an initial public offering with the aim of buying a private firm, which then automatically gets a stock market listing.
Signa Sports United also runs firms like bicycling online shops Bicycle.de or Bikester, tennis platforms Tennis-Point or Tennis Express, outdoor sports retailers like Campz and team sport shops Outfitter and Stylefile.
The company operates more than 80 Web stores in 17 countries and serves over 7 million online customers a year. The group expected new corporate earnings of $70 million at the end of the current fiscal year to September, excluding its latest acquisitions.
Signa Sports United plans to increase its revenues annually by more than 25% and aims to triple its profitability margin in the long term to 12% -- 15%, using scale effects, pricing technology and the expansion of its technology offering for Third-Party vendors.
After the Yucaipa deal, which is being signed by Citi and Jefferies, the property investor Rene Benko in Signa Sports United will own about 50% of Signa Holding. Then, you could buy a drink and a bowl of the same.