TVS Motor Company on Thursday announced the acquisition of 75% stake in the Swiss E-Mobility Group (SEMG), which represents a Switzerland-based institution that offers traditional Swiss and other attractive bicycle complementary services via a customer-centric multi-channel strategy in the DACH region.
The DACH region represents Germany (D for Deutschland) Austria (A for Austria, in German 'Österreich') and Switzerland (CH for Confoederatio Helvetica, in German).
The acquisition has been made in an all-cash deal through TVS Motor’s Singapore Subsidiary, TVS Motor (Singapore).
This is TVS Motor’s third acquisition in recent times in Europe after acquiring a portfolio of premium and technology leading brands, including Norton Motorcycles and EGO Movement.
SEMG operates the largest pure-play e-bike retail chain M-way in Switzerland with close to $ 100 mn in revenue. It’s portfolio includes Swiss mobility brands Cilo, Simpel, Allegro, and Zenith bikes. SEMG combines its physical network and e-commerce platform with two online platforms and 31 physical stores in the region, said the company.
E-bikes are a growing market segment in Europe, and have established themselves as the de-facto form of personal mobility in the continent primarily due to the increased ease of usage, regulatory support, and overall perception as a sustainable form of transport. E-bicycles currently has a penetration of approximately 15% of the total bicycle population in Europe, and is growing at a CAGR of ~18%.
Venu Srinivasan, Chairman, TVS Motor said the company has always been committed to sustainability and has been investing in electric vehicles for over 10 years. “The increasing global focus on the environment and personal well-being is rapidly accelerating demand for newer mobility solutions, and TVS Motor is investing to drive this change,” he said.
“TVS Motor is committed to being at the forefront of e-personal mobility globally. SEMG complements our acquisitions of Norton Motorcycles and EGO Movement and strengthens our commitment to environmental sustainability. We offer our customers a compelling portfolio of technologically advanced and environment friendly products,” Sir Ralf Speth, Chairman designate, TVS Motor, said.
SEMG has strong omni-channel distribution and aspirational brands, and this acquisition furthers TVS Motor’s commitment towards e-personal mobility products, Sudarshan Venu, Joint Managing Director, TVS Motor.
Speaking on the acquisition, Rainer Fröhlich, Founder and Managing Partner, CONSTELLATION CAPITAL said SEMG has found the ideal and an exceptionally dynamic partner in TVS Motor to reinforce and expand the group's position as a market leader.
“The strategy of having a global leader like TVS as a majority shareholder not only offers untapped potential in quality assurance and procurement in the global supply chain but also lays the foundation for future expansion of the group beyond national borders,” he said.