Riverside sells its stake in Bike24 to WiggleCRC, a competing online cycling equipment and clothing retailer
The Riverside Company announced its intention to sell Bike24, a German online retailer of cycling equipment, accessories and clothing, to WiggleCRC, a holding company of a UK private equity firm Capital of Bridgepoint.
Terms of the deal – subject to regulatory approvals, but expected to be finalized in the coming months – were not disclosed.
Riverside acquired Bike24 in February 2015. During the investment period, the company said it was focused on expanding and professionalizing the business, nearly doubling its total size.
“Bike24 had a well-known brand in the German region, but still had many opportunities to grow,” Riverside partner Michael Weber said in a statement. “Together with an exceptional team at Bike24, we have worked on many initiatives to drive growth. For example, we made significant investments to upgrade the infrastructure by implementing an automated warehouse to speed up shipping and improve inventory processes, and also strengthened the management team by bringing onboard ‘a solid CFO. This partnership has been very fruitful. “
Bike24 is a German rival of WiggleCRC, a company that form last February with the merger of Wiggle and Chain Reaction Cycles in Northern Ireland. Like Bike24, the company is also an online retailer of bicycle equipment and related products and clothing.
The sale to WiggleCRC is would have the value around £ 100million (or roughly $ 131.9million).
Notably, Bike24’s Riverside release is the second announced by the company in as many weeks which features a relatively short investment period.
Many private equity funds tend to own companies for an average of five to seven years. Bike24 has been part of the Riverside portfolio for less than three years. And last week, Riverside sold its stake in Harvey Performance Co. after owning it for less than four years.
With a seller’s market currently prevailing in private equity as the competition for deals is feverishly high – something Riverside co-CEO Stewart Kohl recently discussed with Crain’s – a quicker-than-ditch exit. Usually, Riverside sees attractive offers from highly motivated buyers.
Riverside is a global private equity firm headquartered in Cleveland that invests in growing businesses with a value of up to $ 400 million.