L Catterton is hitting the road with the acquisition of Pinarello, the bicycle producer that’s a favorite of Tour de France winners.
The deal adds to the equity investor’s active stable of companies that already includes spin-bike-maker Peloton, activewear brand Sweaty Betty and workout concept Pure Barre.
Pinarello is known for its premium cycles, but also makes accessories and apparel. The specifics of the deal were not disclosed.
Cycling is a prime area for growth and well-suited for L Catterton, which looks for consumer brands that are boosted by broader trends and have at least the potential to be a leader in their space.
One person familiar with the rationale behind the deal noted that cycling is “being talked about as the new golf.”
Cycling in general benefits from the push toward health and wellness, an aging and more active population and an increase in female participants. The number of bike trips grew 22 percent between 1995 and 2010, said the source.
Pinarello was started 65 years ago by Giovanni “Nani” Pinarello in a small workshop in Treviso, Italy. It will continue to be led by chief executive officer Fausto Pinarello.
L Catterton plans to expand the brand’s presence with bike dealers globally and to build up the accessories and apparel businesses.
Pinarello said: “L Catterton appreciates our uncompromising commitment to creating the world’s finest racing bicycles, and we know their financial and operational expertise will be invaluable during this next phase of growth. Together with L Catterton, we look forward to expanding our global footprint.”
Michael Farello, managing partner of L Catterton’s North American Growth Fund, added, “Pinarello has been generating double-digit revenue growth for more than 10 years.” Andrea Ottaviano, managing partner of L Catterton Europe, said the brand has outperformed in the $54 billion global bicycle market.
L Catterton bills itself as the largest consumer-focused private equity firm in the world and was formed this year when Catterton, LVMH and Groupe Arnault came together in a partnership. The investment house’s wide-ranging holdings also include Pepe Jeans, Baccarat, StriVectin, Clio Cosmetics, John Hardy and other brands.