SIGNA Sports United to go public on NYSE through Combination with Yucaipa Acquisition Corporation
SIGNA Sports United has entered into a business combination agreement with Yucaipa Acquisition Corporation, a publicly-traded special purpose acquisition company. The combination also includes the acquisition of the WiggleCRC Group.
- SIGNA Sports United (SSU) to combine with Yucaipa Acquisition Corporation at an implied enterprise value of approximately $3.2 billion
- The transaction encompasses up to approximately $645 million of gross proceeds through a cash contribution of approximately $345 million held in Yucaipa’s trust account (assuming no redemptions) and a fully committed upsized PIPE of approximately $300 million
- The combination will accelerate SSU’s international expansion, including the concurrent acquisition of WiggleCRC, the second-largest online bike retailer globally, and investment in SSU’s technology platform
- Combined company is a proven and profitable business with expected net revenues of
approximately $1.6 billion in the financial year ending in September 2021 (pro forma for the combination with WiggleCRC) - PIPE investment anchored by Ron Burkle, top-tier global institutional investors and sovereign wealth funds
- SSU existing shareholders to roll 100% of their equity holdings into the new public company
- Bridgepoint, current majority owner of WiggleCRC, to receive part of the purchase
consideration in shares of the new public company - Over the twelve-month period ending March 31, 2021, SSU’s largest segment, Bike & Outdoor, achieved an Adjusted EBITDA margin of approximately 10% in its core DACH markets, whilst growing approximately 40% in revenue compared to the prior year period, and in the rest of Europe, growth exceeded 60% in revenue compared to the prior year period.
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