IDI concludes busy investment year with Ekosport acquisition
IDI concludes busy investment year with Ekosport acquisitionLATEST
Ekosport, a sports equipment and apparel multi-channel distributor, becomes the newest addition to IDI’s high-growth and digitally-led portfolio assets through a primary LBO that sees IDI acquiring a reference minority stake in the company. This latest deal closes a very busy year for IDI, with 15 transactions realised over 2021.
FACT
IDI has announced the investment in Ekosport along with the Frasteya holding company and Ekosport’s management team.
IDI will be obtaining a reference minority stake of around 30% in Ekosport, supporting the company in its organic and acquired growth ambitions in the sports apparel market.
Ekosport, based in the Auvergne-Rhône-Alpes region, counts nine stores and two e-commerce platforms through which it distributes over 25,000 product references in the outdoor sports segment.
The companies did not disclose the financial terms of the deal.
ANALYSIS
IDI is making its first entry in the sports equipment and apparel sector with Ekosport. We see this novel exposure as a positive development for the HoldCo, as this market fully adheres to the high-growth + a strong digital component investment focus. Ekosport is particularly well positioned in the outdoor sports equipment and apparel segment, with a large product offering serving both summer and winter sports’ customer needs.
Ekosport’s multi-channel strategy should provide plenty of organic growth opportunities, with its retail presence in the Auvergne-Rhône-Alpes region leveraging the wide offer of hiking trails, natural parks and ski stations, while its two e-commerce platforms, ekosport.fr and achat-ski.com, allow the company to serve the greater French and European markets.
The sports equipment and apparel market is particularly attractive as the increase in health awareness, the rising popularity of fitness and the growth in disposable income in developing countries is set to boost consumer demand in the coming years. The online retail component is also a major growth driver for the industry, with Ekosport already showing promising progress in this regard, with almost a third of its €80m revenues coming from international markets through its e-commerce websites, making it a leading player in the distribution of outdoor sports equipment and apparel in Europe.
With the support of IDI, Ekosport will embark on an external growth path, consolidating the market through the acquisition of new retail locations and online platforms, while continuing to show strong embedded growth in line with the underlying trends that support the sports equipment and apparel market.
Groupe IDI activity is divided in two areas: through its subsidiaries, EURIDI and Marco Polo Investissements, Co. is engaged in management buy-out/buy-in and growth capital investments in French small-mid caps valued between Euro7,000,000 and Euro75,000,000 also, through its subsidiary, IDI Mezzanine, is engaged in mezzanine financing. Also Co. is active in the purchase of secondary market portfolio.
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