The US athlete joins the German bicycle manufacturer Canyon.
(Photo: AP)
Munich Basketball icon LeBron James joins the German bicycle manufacturer Canyon. The American is taking a stake in the sender with his investment company LRMR, which he runs together with his long-standing business partner and ex-manager Maverick Carter. The two will help drive the expansion of Canyon’s US business.
This shows once again that the bicycle industry has gained in importance for international investors since the cycling boom in Corona times. According to industry estimates, Canyon was taken over by the investment company Groupe Bruxelles Lambert (GBL) at the end of 2020 for EUR 800 million. The Belgians remain majority owners.
In addition to LRMR, the US private equity firm SC Holdings, which has stakes in brands such as Athletic Greens and Just Women’s Sports, also joined the new round of financing.
“We weren’t actively looking for new investors,” said Canyon founder Roman Arnold. “But LRMR and the SC team immediately understood our mission to create the most inspiring and innovative bicycle company in the world.”
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According to the business magazine Forbes, basketball pro LeBron James of the LA Lakers was one of the five highest-earning athletes in the world last year. His income, including sponsorship deals, ranked at $96.5 million.
LeBron James invests in the sports industry
He is also very active as a businessman. Among other things, he joined Liverpool with LRMR in 2017 and is a partner in the Fenway Sports Group, which has a stake in the Boston Red Sox. LRMR Ventures is also active in marketing and media production.
“As an avid cyclist and brand builder, I’m excited to partner with Canyon,” said longtime partner Maverick Carter. The quality of the products, the strength of the Canyon brand and the unique sales model offer many opportunities.
Canyon is one of the pioneers in online bicycle retail. The brand is also used by professional cyclists, for example in the Tour de France. According to industry estimates, the company should achieve sales in the mid three-digit millions.
During the pandemic, many people had rediscovered cycling. According to the ZIV industry association, sales of bicycles and e-bikes in Germany increased only slightly to 6.6 billion euros last year. But that was due to the lack of availability of parts and bikes. For comparison: In 2018, sales were just over three billion euros.
With growing sales, the industry has also become more interesting for investors and consolidation is taking place. At the beginning of the year, a consortium led by the investment company KKR announced the takeover of the Dutch manufacturer Accell Group with brands such as “Batavus” and “Sparta” for around 1.6 billion euros.
Last year, the Dutch group Pon Holdings took over the bicycle subsidiary of the Canadian conglomerate Dorel Industries for 700 million euros. With this, Pon secured brands such as Cannondale and Schwinn and doubled sales in the bicycle business to around 2.3 billion euros.
More: How industry pioneer Sigma wants to compete against Wahoo with its bike computers.