Groupe Bruxelles Lambert (GBL), a major Belgian-based investment company, has agreed to take over majority control of Canyon Bicycles, the German bike producer known for its direct-to-consumer approach. Roman Arnold, a former supplier of bike components who founded the brand in 2002, will reinvest a significant part of the proceeds alongside GBL. Arnold will remain as chairman of Canyon’s advisory board.
Tony Fadell, a former senior vice president of Apple Corp., is also investing in Canyon, and he will provide product expertise as a member of the German company’s advisory board. Fadell led the teams that developed the iPod and the iPhone, is another new investor in Canyon. He also founded ten years ago a high-tech company, Nest Labs, which he then sold to Google.
TSG Consumer Partners, which acquired a significant minority interest in Canyon five years ago, is cashing out completely. The valuation of the transaction was not disclosed, but TSG is probably coming out with a major capital gain in view of the fact that Canyon’s sales grew at an average annual rate of 25 percent in the last seven years, doubling in the last three years to reach a level of more than €400 million.
Led by Armin Landgraf, a former chief executive of Pon Bike who joined the company in February 2019 and became its CEO three months ago, Canyon claims to be offering high quality at better prices than competitors by controlling key stages in the supply chain and bypassing wholesalers and retailers. It has won several prizes for its innovations. Canyon’s light-weight frames are engineered in Germany, manufactured in Taiwan and assembled at the company’s German head office in Koblenz.
Canyon recently set up its own e-commerce operation in the U.S. The company is banking on the growing popularity of e-commerce and cycling in general, in the wake of the Covid-19 pandemic. It has diversified its range from road bikes, mountain bikes and triathlon bikes to include stationary bikes and e-bikes.
