GBL buys Germany's Canyon Bicyles as pandemic spurs demand

Giant Manufacturing Co

15/12/2020 16:04

FRANKFURT, Dec 15 (Reuters) - Belgian investor Groupe
Bruxelles Lambert (GBL) has agreed to buy Germany's Canyon
Bicycles in a bet that the company's strong growth will continue
once the COVID-19 pandemic subsides. 
    GBL, which is also adidas'  ADSGn.DE  largest shareholder,
declined to comment on the price, but two people familiar with
the matter said the deal values the maker of premium
conventional and electric bikes at about 800 million euros ($972
million), including debt.
    Canyon’s sales have grown at an average rate of 25% per
annum over the last seven years, and now exceed 400 million
euros, GBL said in a statement.
    Germany has seen a sharp rise in bicycle sales this year as
COVID-19 encouraged people to use them more for exercise and to
avoid public transport. 
    The company, founded in 1985 as a bicycle retailer, started
producing Canyon-branded bikes in 1996 and TSG bought a minority
stake in 2016, enabling an expansion of Canyon into the United
States.
    As part of the transaction, minority investor TSG Consumer
Partners is exiting its stake. The company's founder, Roman
Arnold, will remain the chairman and reinvest a significant part
of his proceeds alongside GBL. 
    Former Apple manager Tony Fadell is also taking a stake. 
    Reuters reported in October that Arnold had put a stake in
the company up for sale. urn:newsml:reuters.com:*:nL8N2HC45E
($1 = 0.8233 euros)

 (Reporting by Arno Schuetze and Alexander Hubner; Editing by
Jan Harvey)
 ((arno.schuetze@thomsonreuters.com; +49 30220133648;))