Major Private Equity Firms Considering Buying Canyon Bicycles
Canyon's search for new investors has attracted takeover interest from private equity firms Carlyle Group and KKR & Co, along with buyout firms Advent International, Apax Partners, General Atlantic and Permira, according to Bloomberg.
KKR & Co recently led a $450 million investment into
Zwift, and all of the parties interested in Canyon appear intent on
capitalizing on the recent surge of interest in cycling and other outdoor
activities. The sale is expected to bring in up to 500 million euros ($592
million) for the company.
Canyon reported a 30% growth of global sales in 2020, which
were expected to total 400 million euros ($474 million). When those numbers
were announced, Roman Arnold, one of the company's founders and the former CEO,
said, "We have reached a scale at which we need additional investors for
our growth and innovation plans." The company's growth over the last 5
years was helped by TSG Consumer Partners LLC, who bought a significant
minority stake in Canyon in 2016.
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