SIGNA Sports United, WiggleCRC to merge with Yucaipa in $3.2bn deal

SIGNA Sports United (SSU), a German online sporting goods retailer, and UK-based online bike retailer WiggleCRC Group have agreed to merge with Yucaipa Acquisition Corporation, a publicly traded special purpose acquisition company, based on a pro forma enterprise valuation of $3.2 billion.

The combined firm will retain the SIGNA Sports United name and will be listed on the New York Stock Exchange.

WiggleCRC Group is being acquired from alternative asset fund management group Bridgepoint, which will get part of the purchase consideration in shares of the enlarged SIGNA Sports United.

The combined entity is expected to be one of the largest pure-play online sporting goods retailer with projected net revenues of around $1.6 billion in the financial year ending in September 2021. It is estimated to cater to more than seven million active customers, over 1,000 brand partners, more than 500 connected retail stores, and over 15 million sports community users across the world.

Stephan Zoll – CEO of SIGNA Sports United said: “We’re proud and excited by this next chapter in SSU’s growth story. Becoming a listed company allows us to continue capturing market share in Europe and to accelerate our U.S. and international expansion while scaling our platform solutions.

“We also look forward to welcoming WiggleCRC to our SSU family. The acquisition enhances our global online leadership especially in the bike category. Our focus on growth and internationalization coupled with our platform approach drives significant scale benefits.”

German online sporting goods retailer SIGNA Sports United and British online bike retailer WiggleCRC WiggleCRC to merge with Yucaipa Acquisition Corporation in $3.2bn deal

German online sporting goods retailer SIGNA Sports United and British online bike retailer WiggleCRC WiggleCRC to merge with Yucaipa Acquisition Corporation in $3.2bn deal. Photo courtesy of Tumisu from Pixabay.

The deal is likely to provide up to nearly $645 million of gross proceeds through $345 million of cash held in the trust account of Yucaipa Acquisition Corporation and a PIPE of around $300 million.

Ron Burkle, the chairman and president of Yucaipa Acquisition Corporation, will invest $50 million in the PIPE. The other PIPE participants include top-tier global institutional investors and sovereign wealth funds.

Ron Burkle said: “SSU is a global leader in the fastest-growing sports categories and is well-positioned for continued success as a public company.

“With its technology platform – and a combination of scale, international growth and profitability – we expect SSU to grow its leadership positions and accelerate its global expansion. We look forward to becoming shareholders and partnering closely with the talented SSU team on this exciting journey.”

The deal, which is subject to approval from Yucaipa Acquisition Corporation’s shareholders and other customary closing conditions, is anticipated to be wrapped up in the latter half of 2021.

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