Aston Martin backer reportedly makes £200m bid for Rapha

An Italian private equity firm that owns 37.5 per cent of luxury car marque Aston Martin has made a £200 million bid to buy upmarket cycle clothing firm Rapha, reports Sky News.

Investindustrial, which acquired its shareholding in Aston Martin in 2012, is said to have been joined on the final shortlist of bidders by investment group Invus, which has previously backed businesses including Weight Watchers.

There may also be other parties in line to make a successful bid that have not being identified yet, according to Sky News sources.

The latest development comes less than three weeks after the broadcaster said that private equity houses TPG and Advent International were among the front runners to buy Rapha, although now it reports that they have pulled out of the process.

> Rapha reportedly set to be sold for nearly £150 million

Some potential purchasers are said to have been put off by the price tag, which could be as much as 20 times Rapha's annual profits on a business with turnover in its latest financial year of £63 million.

Sales in the year to January 2017 were reported to be £63 million, a 30 per cent increase on the previous year, while turnover growth since then is believed to be 40 per cent.

Sky News says that according to people close to the process, a deal could be completed within a fortnight.

Founded in 2004, Rapha appointed US-based investment bank William Blair to advise it on a potential sale in April this year.

Rumours that shareholders in the north-London owned business, co-founded by former branding consultant Simon Mottram, were looking for an exit had been circulating since late last year.

Investindustria's past investments include Ducati, Karrimor, Mountain Warehouse and ... here's one to make cycling fans nostalgic  ... Euskaltel.