Duell as an investment

Duell as an investment

Duell is a powersports aftermarket distributor from Finland’s Ostrobothnia. Duell offers a broad assortment of products across all of its sales channels for four seasons through its six product categories comprising Onroad motorcycle (“Onroad MC”) products, Offroad motorcycle (“Offroad MC”) products, ATV products, Snowmobile products, Bicycle products and Marine products.

1. Duell is well-positioned in a large and stable market with forecasted growth add

Duell’s main addressable market exhibited a stable growth between 2010 and 20191. Duell’s main addressable market is expected to grow at a CAGR of 2 percent between 2019 and 2025.The main addressable market is currently undergoing a gradual shift from traditional brick and mortar shopping to online shopping, and Duell is well positioned to benefit from the expected growth in online shopping and believes that it is a trustworthy partner for online dealers in the growing online business to consumer market.

2. Market leading position in the Nordics with a rapidly growing presence in the rest of Europe add

Duell estimated it market share in Finland, Sweden, and Norway to be 18 percent, 11 percent and 7 percent in 2021. Duell has also entered various other European markets successfully, such as the Netherlands and France. 

3. Broad portfolio of renowned brands add

Duell’s brand portfolio, including both third party and own brands, consisted of over 290 brands. Duell’s brand coverage is significantly wider than that of its large competitors in Europe2, and Duell has managed to gain exclusivity of some of the brands. In addition to the distribution of third party brands, Duell’s offering includes 19 own brands. Duell estimates, that the share of its own brands will continue to grow and that they will generate more than 25 percent of net sales in the medium term.

4. Duell has a strong and stable position in key sales channels add

Duell believes that the most important way to bring value to both directions of the value chain is through economies of scale and quality service to both brand owners and customers. The efficient electronic ordering process and stock availability and strategically placed warehouses enable fast and reliable deliveries. Duell also provides brands and dealers sales and aftersales support and valuable customer insights and local market knowledge.

5. Duell has a strong and stable position in key sales channels add

Through Duell brand owners can reach nearly 7,500 dealers. Duell has a strong brick and mortar shopping market position in its key markets. Duell aims to be a trustworthy partner for online dealers as well and its online sales have increased. Duell’s customer base is diverse and highly fragmented and Duell is not dependent on any specific customer or group of customers. Of Duell’s net sales for the financial year ended August 31, 2021, 20 percent was generated by ten of Duell’s largest customers.

6. Duell has control over critical parts of the value chain add

Duell has a diversified supplier base. Duell’s strategically located warehouses support efficient delivery to all markets across Europe. Duell also believes that supporting technology, such as Duell’s warehouse management system, facilitates agile logistics, which is key in servicing online dealers. Duell believes that IT infrastructure is essential in meeting the demands of both traditional offline dealers as well as online dealers. Duell’s strong local sales teams that have contributed to its strong sales growth in recent years.

7. Track record of strong organic growth, M&A and high profitability add

The average annual growth in our net sales from October 1, 2012 to August 31, 2021 was approximately 14.5 percent, of which approximately 14.1 percent was organic growth. Our gross margin percent grew to 9.5 percent during the financial year ended August 31, 2021.

8. Skilled, experienced and passionate management team and personnel add

Duell’s management team has extensive understanding of the Powersports Aftermarket as well as operational, managerial and financial experience within various other industries. Duell’s management team also has significant experience in executing acquisitions and integrating acquired businesses. Duell believes that the long experience of its management team, together with its other skilled and passionate personnel, is a key competitive advantage in the Powersports Aftermarket.

Sources add

1) 1) Third party market study commissioned by Duell in the spring of 2021
2) Status 31.8.2021. the market shares are calculated by dividing total sales by total market size. Source: Third-party market study commissioned by Duell in the spring of 2021

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