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Pinarello sold to private equity firm part owned by French luxury goods group LVMH, owner of Louis Vuitton

L Catterton takes majority stake in Italian bike brand - could Rapha be its next acquisition?

A majority stake in Italian bike brand Pinarello has been sold to a US private equity fund part-owned by French luxury goods group LVMH.

The news, announced in a press release from Pinarello issued earlier last month confirms rumours that first circulated last month about an impending sale of the business, which is bike sponsor to Team Sky.

CEO Fausto Pinarello, whose father founded the Villorba, Treviso-based business, remains in his position and retains a significant, but minority stake in the business.

LVMH has been rumoured to be keen to move into the sports and leisure sectors, and last week was linked with a bid for upscale British cycle clothing brand Rapha.

As we suggested last week, L Catterton - formed earlier this year through a partnership of Catterton, LVMH and the family holding company of the French group's CEO, Bernard Arnault, would seem the most likely vehicle for such an acquisition.

> LVMH reportedly in talks to buy Rapha

Here's today's press release in full:

Villorba, Treviso (ITALY), 6th December 2016 – Pinarello, leading brand of premium road bicycles, parts and accessories, announces the investment of L Catterton, the largest consumer-focused private equity firm in the world, in the Pinarello Holding company. Fausto Pinarello, current CEO of Cicli Pinarello Spa, remains as CEO and will continue to lead the team out of its Treviso headquarters.

Pinarello plans to expand its presence globally and the company aims at opening new Pinarello concept stores in some of the most prestigious capital cities in the world. The operation was conducted jointly by L Catterton Europe and L Catterton North American Growth funds and regards the majority of Pinarello Holding capital, while Fausto Pinarello maintains a minority – although significant – stake.

Pinarello Holding counts € 52 million revenues during fiscal year 2015/2016, 90% of which are realized abroad. Operating in more than 50 countries around the world, Pinarello has more than 50 employees and produces 30.000 bikes and structures per year, investing 4% of revenues in R&D.

Fausto Pinarello, Pinarello CEO, commented “L Catterton’s unparalleled experience in building leading brands and deep understanding of the global consumer market make them the ideal partner for Pinarello. With even more passion than the one we have already dedicated so far, we will write a new page of the company story. It is still the story of our company which will continue to be led by the same team that made Pinarello the unique company it is now. With L Catterton’s Pinarello will see new growth perspectives; we will not forget our roots and continue our path, creating innovative and high quality products.”

“We are thrilled to partner with Pinarello, which over nearly seven decades has established itself as the premium road cycling brand in the world,” said Andrea Ottaviano, Managing Partner of L Catterton Europe. “We look forward to supporting Pinarello’s continued success.”

Michael Farello, Managing Partner of L Catterton’s North American Growth Fund, added, “We are pleased to have the opportunity to help Pinarello to further extend its leadership position across the bicycle, accessories and apparel categories. With its rich heritage and outstanding management team, Pinarello has been generating double digit revenue growth for more than 10 years. We will build on that growth and success as we work to continue the rapid expansion of the Pinarello brand and legacy.

More to follow.

Simon joined road.cc as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.

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8 comments

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stucolnago | 7 years ago
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Call me an old fart but I much prefer meeting the guy or girl who will spend time with me understanding what riding I do then designing the frame/bike around me.

With these transactions it is all about the $$$ and international branding and market share.

Look at the like of Casati or Marco Bertoletti , two small companies but amazing engineering and skill not to mention art and building of the their frames are not contracted out to Asia.

And as a final comment it saddens me to see how many Pinarello F8's are built up with 50/34 chainsets...says it all about the market they are aiming at.

 

Everyone to their own of course. Happy cycling.

 

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wycombewheeler replied to stucolnago | 7 years ago
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stucolnago wrote:

And as a final comment it saddens me to see how many Pinarello F8's are built up with 50/34 chainsets...says it all about the market they are aiming at.

 

Only people who ride on the flat should buy Pinarellos?

I bet even the pros don't go up the steep climbs on a 36 x 25 gear

ah yes

http://www.velonews.com/2011/09/vuelta-a-espana/vuelta-tech-gear-ratios-...

Chris Froome would have chosen any easier gear than 38 x 32 in hindsight, which is an easier gear than 34 x 28 which these pinarellos you are being snobby about have.

Avatar
Vili Er replied to stucolnago | 7 years ago
1 like

stucolnago wrote:

And as a final comment it saddens me to see how many Pinarello F8's are built up with 50/34 chainsets...says it all about the market they are aiming at

I've got an F8 and a Colnago C59 and quite a few other very nice bikes. They all have 50/34's and two have 12/29's at the rear. Bet that gets your back up. Not that I give sh*t what you think. Too busy enjoying my retirement, on my lovely bikes, at 45 years of age  3

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Nathan79 | 7 years ago
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Ooooh, will there be a LV special edition with LV branding emblazoned all across it ? Thereby creating the ultimate in poncyness  ?

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Looper35uk | 7 years ago
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Go on Sky dump Pinarello and truly join the dark side by riding a Specialized.

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Sax_Huret | 7 years ago
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Executive Faustus

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beezus fufoon | 7 years ago
2 likes

deep understanding of the global handbag market

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marcof11 | 7 years ago
1 like

should it not say "frames" ( as in bicycle frames) not " structures  ( as in buildings)  ? The italian word is "telaio" in either case.

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