Compagnie des Alpes Announces Strategic Acquisition of Urban Group to Enhance its Leisure Portfolio

Compagnie des Alpes (CDA) is set to acquire a majority stake in Urban Group, a leading entity in the French urban sports market, known for its 5-a-side soccer and padel facilities. With this move, CDA aims to diversify its leisure offerings and tap into the growing popularity of urban sports.

The acquisition denotes a strategic alignment with CDA's expansion goals, allowing it to venture into year-round sports activities that foster community engagement and are independent of seasonal variations. Urban Group, host to 3.75 million players annually, boasts 33 centers across France and a presence in Portugal, signaling strong market command and growth potential.

CDA's CEO, Dominique Thillaud, highlighted the synergetic potential of this acquisition, underscoring the fit between the company's vision and the robust momentum of urban sports. The integration is expected to enhance CDA's portfolio with high-quality, digital-first sports offerings while aligning with its CSR objectives.

Urban Group brings to the table a formidable business model with low capital expenditure needs and strong revenue prospects, including expected sales of €48 million and EBITDA of €21.5 million for the fiscal year 2023/24. The acquisition, funded through CDA's resources, promises to be accretive from a financial perspective.

This significant expansion into urban sports also positions CDA to capitalize on the under-tapped French market for 5-a-side soccer and padel, promising a lucrative growth trajectory amidst a post-Covid surge in interest for these activities. The transaction, subjected to customary closing conditions, marks a pivotal step for CDA in diversifying its leisure portfolio.