Thule Group has agreed to acquire phone mount retailer Quad Lock for $500 million, equivalent to 10 times its earnings before interest, taxes, depreciation, and amortisation (EBITDA).
The acquisition is expected to increase Thule’s market share in Asia Pacific from 5 per cent to 10 per cent as it gains access to a customer base of motorcycle enthusiasts.
“Quad Lock is a global market leader in its niche and, like Thule, has a passion for creating the best products for active adventurers, with a strong focus on quality and innovation,” said Mattias Ankarberg, Thule Group CEO and president.
“Welcoming Quad Lock’s talented employees to the Thule family strengthens us in several areas and is a valuable step towards our financial targets for 2030; sales of ($2.8 billion) and an EBIT margin of at least 20 per cent.”
Currently, Quad Lock sells in about 100 countries, with about 75 per cent of the sales being through e-commerce, direct to consumers.
In the past year, Quad Lock booked sales of $196.4 million and reached an EBITDA margin of 25 per cent.
“This market is growing rapidly, and we look forward to tackling the many growth opportunities together,” said Andrew Poole, Quad Lock CEO.
“As a management team, we also appreciate becoming Thule shareholders as part of this transaction and getting the opportunity to take part in the future value creation of our combined companies.”
How Quad Lock is growing through ambassadors, sponsorships and the F1.
