FRANKFURT (Reuters) – Sporting goods retailer SIGNA Sports United, owned by Austrian investor Rene Benko, is in talks to go public through a merger with a blank check company in a deal that could value the firm at up to $4 billion, two people familiar with the matter said.<\/p>\n
SIGNA Sports United is working with several banks, including Citigroup Inc, on a potential transaction and is in preliminary talks with special purpose acquisition companies (SPAC), including Yucaipa Acquisition Corp, the people said.<\/p>\n
SIGNA Sports United is also nearing a deal to buy Britain-based online sporting goods store Wiggle, which is owned by private equity firm Bridgepoint, the people said.<\/p>\n
No agreements have been reached and there is no guarantee that deals will materialise, they added.<\/p>\n
SIGNA and Wiggle declined to comment. Citigroup and Yucaipa were not immediately available for comment.<\/p>\n
SIGNA Sports United explored a stock market listing in 2019 at a valuation of 1 billion euros but then opted for a fundraising, bringing in Asian retailers Aeon Co Ltd and Central Group as well as German insurer R+V.<\/p>\n
SPACs raise funds in an initial public offering with the aim of buying a private firm, which then automatically gets a stock market listing.<\/p>\n
SIGNA Sports United runs firms like bicycle online shops Fahrrad.de or Bikester, outdoor gear retailer Campz and online tennis platform Tennis-Point as well as team sport shops Outfitter and Stylefile.<\/p>\n
The company runs more than 80 web shops in 17 countries, reaching over 4 million customers a year. The group expects sales of about $1.6 billion in its current fiscal year to September, the people said, adding this could more than double over the next four years.<\/p>\n
In July 2020, it said nine-month sales had spiked by 28% as shoppers went online during the coronavirus pandemic with shops closed in lockdowns.<\/p>\n