TVS Motor Company on Thursday said it has acquired a 75 per cent stake in Switzerland's largest e-bike player, Swiss E-Mobility Group AG (SEMG), for $100 million.
The acquisition reaffirms the company's commitment to expanding operations in Europe through a portfolio of premium and technology leading brands, including Norton Motorcycles and EGO Movement, which were recently acquired.
The acquisition has been made in an all-cash deal through TVS Motor (Singapore) Pte Ltd.
"Today, the company has acquired SEMG, the leading e-bike company in Switzerland, with a revenue of over 70 million francs last year at a valuation of about $100 million," TVS Motor Company Joint Managing Director Sudarshan Venu told reporters in an online press conference.
The company is looking to buy the remaining stake in the company as well in the future, he added.
"This acquisition furthers TVS Motor's commitment towards e-personal mobility products. We are strengthening our presence in the rapidly growing e-bikes segment," Venu noted.
SEMG has 38 large retail stores in Switzerland from where it sells brands like Cilo, Simpel and Zenith, and has around 20 per cent market share in the Swiss market.
"We believe that there's a great opportunity to build these products and this is part of our broader commitment and push behind each e-personal mobility solution... I believe we can grow this (market share in Switzerland and beyond)," Venu noted.
He said the brands have growth potential not only in Europe but also in other markets including India.
"Before the second half of this year, you will see these brands in India," Venu noted.
He stated that with the acquisition, TVS is looking at a total revenue of $100 million from the e-bike segment alone this year.
"If you look at the personal mobility segment, which is the e-bikes and associated products, we are targeting over $00 million from SEMG alone... So that is the revenue that we expect from the electric bicycles alone this year," Venu noted.
E-bikes are establishing themselves as the de-facto form of personal mobility in Europe due to the increased ease of usage, regulatory support and overall perception as a sustainable form of transport.
With a current penetration of about 15 per cent of the total bicycle population in Europe and growing at a CAGR (compound annual growth rate) of 18 per cent, the market for the e-bicycle holds significant growth potential.
"TVS Motor 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," TVS Motor Company Chairman Venu Srinivasan stated.
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, Constellation Capital Rainer founder and Managing Partner Frohlich stated.
In September last year, TVS Motor Company had acquired an 80 per cent stake in Swiss electric bicycle and personal mobility company EGO Movement for around $18 million.
