Upmarket cycle clothing firm Rapha is set to be sold in a deal that could value the London-based business at almost £150 million, reports Sky News.
Rumours have been circulating since late last year that the firm, founded in 2004, was up for sale, with US-owned investment bank William Blair appointed in April to advise Rapha.
> Rapha reportedly appoints US-owned investment bank to advise on sale of business
Potential purchasers are said to include the private equity firms TPG, whose investments include Ducati and Spotify, and Advent International, backer of businesses such as Fatface and Poundland.
Co-founder and CEO Simon Mottram, whose background is in brand consultancy, had previously brought Active Private Equity on board as an investor.
Despite the company’s four-year sponsorship of Team Sky coming finishing at the end of 2016, business is reported to continue to be booming.
Rapha’s sales in the year to January 2017 are reported to be £63 million, up 30 per cent on the previous year, and growth since then is said to be running at 40 per cent.
Sky News said that neither Advent not Rapha would comment when approached.
14 thoughts on “Rapha reportedly set to be sold for nearly £150 million”
And there endeth any
And there endeth any endearment with Rapha I previously had.
Some darn good clobber to be sure, however there’s plenty of other darn good clobber out there which isn’t part of some faceless international finance investment parasite.
See Velobici, Ashmei (British) Pedal Ed, Isadore, Cafe Du Cyclist as just some of the other ‘premium’ examples… I just hope the cycling media generally follows suit and champions another British ‘cool brand’ in it’s place.
peted76 wrote:
Yawn.
Keep the red flag flying comrade.
Rich_cb wrote:
Yawn. Damn, they’re contagious over the internet as well!
What did you think Rapha was
What did you think Rapha was before this? It’s a brand made up by a British marketing guy in the 2000s to sound continental and retro, not some hallowed bastion of cycling culture.
Jackson wrote:
I thought it was just that, a British brand done good on a global stage, to the point of being quoted in mainstream news outlets. Regardless of where you stand on Rapha (overpriced nonsense or british cool brand) there’s no denying that Mottram has ridden resergence of cycling in the UK wave very smartly indeed and I don’t think that anyone could disagree that he’s brought something new to the scene (even if it is just hyperbole). I mean everyone needs a £65 Rapha silk scarf right?
That’ll get the buyer a
That’ll get the buyer a couple pairs of Rapha tights and maybe a jersey…
All that matters is whether
All that matters is whether the prospective new owners will prioritise short or long term profit. The former is easier to achieve (drop the quality of product/service; de-prioritise R&D; engange mainstream channels). No guarantee this will be their tack though.
Fuel short term growth and 3
Fuel short term growth and 3-5 year exit for the PE capital surely. Rapha tour teams coming to a tour near you?
Risky purchase, there are
Risky purchase, there are soooo many businesses large and small providing cycling apparel. It’s very easy to drift from one to another. If there’s any perception of a drop in quality, the new owners will lose big time.
Don’t give a monkeys who owns
Don’t give a monkeys who owns Rapha.
As long as they keep innovating and producing quality kit I’ll keep spending my money there.
gazzaputt wrote:
The problem often is that when the founders leave, the people who remain are dull unimaginative corporate types who are unable to maintain the type of thinking that led to the initial success, and the reason for buying it in the first place. Apple was a classic example. But I like Rapha stuff, and their philosophy, so fingers crossed that it all works out.
The good thing is – Rapha has
The good thing is – Rapha has a very clear image and demographic. (They wobbled a bit with their ‘cheap’ Sky lines). So that delivers an easy model for the new owners to follow. There’s an EXCELLENT management and creative level below the current (previous?) owners of Simon etc. If they stay on – and perhaps even get added to – I can see a strong future.
Pedal Ed is owned by Selle
Pedal Ed is owned by Selle Royal.
a_P wrote:
Well I did not know that.
It would appear my foundation of socialist ideals are built on a similar amount of research and thought as Katie Price puts into her marriages.