European investment firm Brussels Lambert Group buys a majority stake in Canyon Bicycles GmbH. Therefore, TSG consumer partners out of its stake. Outdoor activities like cycling have become very popular during the pandemic and the demand for these products has increased.
“Canyon has long been the sole pioneer in the cycling market over the past 20 years as the only major direct-to-consumer player, while most competitors have rejected DTC in favor of independent wholesale distribution.” , declares Blythe Jack, General manager, TSG consumer partners. “Canyon’s world-class product line and DTC strategy have been a powerful combination, as the global pandemic has revealed, as demand for premium cycling products delivered via e-commerce has exploded. Due to Canyon’s unique ability to meet the consumer with the product they want in their preferred channel, the company has been well positioned to take significant market share gains and further boost brand equity. Finally, while Canyon’s value proposition for consumers is certainly compelling, perhaps the biggest unlock is how a DTC model makes the cycling industry much more attractive to investors due to the invaluable relationship with consumer and proprietary distribution.
The Brussels Group says it is attracted to Canyon because there are underlying growth trends in the US bicycle industry. The pandemic has made consumers more health conscious than ever before, and people are doing more outdoor activities that can be enjoyed while taking social distance, such as cycling.
“Canyon’s growth has been driven by technological leadership and innovative power, increased brand awareness, capitalization of the market shift towards e-commerce, increasing penetration of bicycles, in particular in the e-bike category, and recent successful entries into the US markets. Canyon will have many growth drivers in the years to come, including further growth in Europe and the United States, as well as in the booming electric bicycle market, ”the firm said in a statement.
To know more Mergers and Acquisitions’ coverage on consumer trends, see: The New Consumer: Offers are thriving in 5 key industries as Covid is changing the way we live now.