AEP Merges P&W With Bihr's German Subsidiary
As the Genstar Capital owned Arrowhead Engineered Products (AEP - Blaine, Minnesota) continues its search for synergies and adjacencies in order to optimize efficiencies and rationalize economies of scale in the diverse network of acquisitions it has made in the powersports industry (on both sides of the Atlantic) in the past decade, one such has been a decision to merge two of its German motorcycle industry subsidiaries, announced in April this year.
Bihr (powersports distributor of Bartenheim, France, and Kontich, Belgium) formally acquired Glinde, Hamburg based distributor and own brand operator Paaschburg & Wunderlich (P&W) in June 2021 - having co-located its own German market subsidiary (Bihr GmbH) at the P&W premises some 21 months earlier. Bihr was in turn acquired by AEP in October 2022, with P&W (and several other European motorcycle businesses that Bihr had acquired) coming as part of the package.
At that stage, AEP had already owned British distributor Hi-Level since 2015 and Italian piston manufacturer Vertex since 2016. Bihr itself had additionally acquired several businesses (P&W being one of them) by the time the deal with AEP took place. These included the British Moto Direct/RST apparel operation.
In the United States, AEP owns and operates Western Power Sports, one of the largest powersports industry P&A/G&A distributors, and a number of other brands, including All Balls Racing, Winderosa and the C&E Companies brands - such as Cylinder Works, Hot Cams, Hot Rods, Pivot Works and Tiger Lights.
Now, in what AEP describes as a "significant milestone," the two German entities, Paaschburg & Wunderlich GmbH and Bihr GmbH, will be merged by the end of this year, and will operate under the name Paaschburg & Wunderlich GmbH. "This merger brings together the best of both companies, promising unparalleled local expertise, a high level of service and an unbeatable brand portfolio," said an AEP company statement.
The joint entity is headed up by Peter Hakanson (as Managing Director), the former automotive and electronics industry executive (Delphi, Volvo, GE, Philips) who AEP hired as president to head-up its consolidated Powersports Europe operation a couple of years ago.
"This migration has prompted several key developments: the company is focused on expanding the growth of its leading own brand HIGHSIDER across Europe. As such, the product portfolios of its proprietary brands, Shin Yo, LSL, V-Parts and Vicma, will be reassessed and integrated into HIGHSIDER. Further details on this process will be released in the coming months.
"Additionally, the business will also streamline its range of supplier brands. As a result, a portion of the existing brands it distributes will be phased out and replaced by equivalent products from HIGHSIDER and other brands within the Bihr portfolio.
"These strategic decisions will position Paaschburg & Wunderlich to have the most relevant technical accessories brands within the sector."
Peter Hakanson is quoted as saying: "This merger and the new brand strategy represent a significant step towards an even stronger market position for us. We are confident that the combination of proven expertise, excellent service and a comprehensive brand portfolio will provide even greater value to our dealers."
The company says it "looks forward to an exciting future and reiterates its commitment to remaining a trusted partner for its suppliers and customers."