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Groupe Bruxelles Lambert (GBL) has acquired a majority stake in Canyon Bicycles GmbH. The deal will see Canyon founder Roman Arnold retain a 40% stake in the company, reinvest a substantial amount of the proceeds of the sale and remain in the company as chairperson of the advisory board.
GBL, which already owns a majority stake in Adidas, will take over Canyon in a move that sees U.S. based TSG Consumer Partners end its investment in Canyon. TSG had originally invested in Canyon in 2016, with the aim of assisting Canyon break into the American market.
The sale of the majority share in Canyon follows Arnold’s decision to step down as CEO of the bike company he founded in 2001. Couple this with a record €400 million in sales for the last fiscal year and the declaration from Arnold of plans at Canyon for further growth and new investors, today’s take over announcement should come as no surprise.
In fact, Canyon’s sales have grown by an average of 25% annually over the past seven years. This had led to rumours circulating that the direct-to-consumer brand had a valuation in the region of €800 million.
While regulatory approval is needed before the deal can be completed, this is expected to happen in quarter one of 2021.