Billionaire Ivan Glasenberg Acquires Controlling Stake in Pinarello: An Elite Bicycle Maker
Ivan Glasenberg, the former CEO of Glencore, is set to acquire a controlling stake in Pinarello, one of Italy’s premium bicycle brands. The acquisition is said to value the company at around €250 million and will see Glasenberg expand his cycling interests, having invested in high-tech cycling clothing brand Q36.5 and sponsoring a professional cycling team. Pinarello was controlled by the Pinarello family until 2016 when it was acquired by investment firm L Catterton, who wanted to expand the business globally, including new business lines that sell apparel and accessories. Through the acquisition, CEO Fausto Pinarello remained in charge of the company at that time. According to reports, Glasenberg is expected to purchase an around 80% stake in the company, with Fausto Pinarello keeping the remainder. Luxury sports brands are an attractive segment for private investors due to relatively high gross margins.
Expanding Cycling Interests
Ivan Glasenberg, an avid cyclist, has been expanding his cycling interests since stepping down as the head of Glencore. Glencore was a global mining company, and Glasenberg served as the CEO for nearly two decades. Upon his retirement in 2021, he owned a 10% stake in the company, which was worth about $5.4 billion at today’s share price. Glasenberg’s investment in Pinarello marks another significant milestone in his commitment to promoting cycling. The Pinarello acquisition is not Glasenberg’s first foray into the world of cycling investments. Apart from Q36.5 and sponsoring a professional cycling team, Glasenberg also invested in Cycling since leaving his position in Glencore.
Glasenberge’s Visit to Pinarello
Italian media reported that Glasenberg was seen visiting Pinarello this week, sparking speculation about a potential acquisition. According to several people familiar with the transaction, Glasenberg is close to finalizing the purchase of a majority stake in Pinarello. Glasenberg’s interest in Pinarello was first reported by the Italian newspaper Il Messaggero. However, L Catterton and Glasenberg declined to comment, and the Pinarello company did not respond to an immediate request for comment.
Pinarello – A Premium Italian Bicycle Brand
Founded in Treviso over 70 years ago, Pinarello has come a long way from its humble beginnings. Today, it is known for manufacturing high-quality carbon racing bicycles, some of which can cost more than £10,000. Pinarello riders have won the Tour de France, cycling’s premier event, more than a dozen times. As a premium Italian bicycle brand, Pinarello has established itself as a producer of high-end, high-performance bicycles, known for their exceptional quality, design, and craftsmanship.
L Catterton: Investor in Fitness Companies
L Catterton, the investment firm that acquired Pinarello in 2016, has close ties to the LVMH luxury group and significant experience investing in fitness companies. The consumer investment group has previously backed the likes of connected fitness group Peloton and leisurewear brand Sweaty Betty. In acquiring Pinarello, L Catterton set itself the task of expanding the business globally, including by expanding business lines that sell apparel and accessories.
Summary
Billionaire Ivan Glasenberg is set to acquire a controlling stake in the elite bicycle maker Pinarello. The acquisition is expected to value the company at around €250 million and will see Glasenberg expand his cycling interests, having previously invested in high-tech cycling clothing and sponsoring a professional cycling team. Pinarello, which was controlled by the Pinarello family, was acquired by investment firm L Catterton in 2016. L Catterton had sought to expand the business globally, including by expanding business lines that sell apparel and accessories. Luxury sports brands are an attractive segment for private investors due to relatively high gross margins. Glasenberg’s interest in Pinarello marks another significant milestone in his commitment to promoting cycling. Glasenberg is close to finalizing the purchase of a majority stake in the company.
Expanding Bicycle Investments: Is This the Future of Cycling?
Cycling is an activity that has enjoyed growing popularity in recent years, with many individuals choosing it as an essential tool for staying healthy and active. However, behind the scenes, cycling has also grown into a lucrative industry with investments pouring in from all corners of the world. One such investor is Ivan Glasenberg, who has been expanding his cycling interests since stepping down as the head of Glencore.
With the acquisition of Pinarello, Glasenberg has added another successful cycling brand to his portfolio, which already includes high-tech cycling clothing brand Q36.5 and sponsoring a professional cycling team. Pinarello, with a reputation for producing high-quality carbon racing bicycles, has established itself as one of Italy’s premium bicycle brands and has seen its riders win the Tour de France more than a dozen times.
Moreover, Glasenberg’s investments in cycling highlight how private investors are starting to take notice of the industry’s potential for growth and innovation. The industry is seeing massive investment in electric bikes, micro-mobility, and smart connectivity, with players such as Trek, Giant, and Bosch doubling down on investments in cycling. The global bicycle industry is expected to grow by USD 10.68 billion during 2021-2025, with the increasing adoption of e-bikes, according to Technavio.
Glasenberg’s commitment to cycling shows that investors can become catalysts for change, driving innovation and growth in different markets. His investment in high-tech clothing and high-end bicycles marks a shift towards high-performance cycling equipment that is rapidly gaining popularity, especially among millennials and Gen Z. Beyond generating profits, bicycle investments also promote sustainability and environmentally-friendly modes of transport, which could play a critical role in shaping urban mobility.
Conclusion
Cycling investments are skyrocketing as individuals, governments, and private entities aim to promote sustainability, health, and wellbeing. Glasenberg’s acquisition of Pinarello highlights the growing interest in cycling investments and how investors can help drive innovation in the industry. The future of cycling looks promising, given the massive investment in electric bikes, smart connectivity, and micro-mobility solutions. As we move towards a post-pandemic era, the bicycle industry could play a more significant role in promoting active mobility, environmental sustainability, and urban mobility.
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Billionaire Ivan Glasenberg, the former chief executive of Glencore, is set to acquire a controlling stake in elite bicycle maker Pinarello as he expands his stable of cycling interests.
The premium Italian brand was controlled by the Pinarello family until 2016, when it was acquired by investment firm L Catterton.
Glasenberg is close to finalizing the purchase of a majority stake in Pinarello, according to several people familiar with the transaction. The deal values the company at around 250 million euros, one of the people said.
The mining tycoon and athlete – a champion walker in his youth who nearly competed in the 1984 Los Angeles Olympics – has invested in Cycling since stepping down as head of Glencore.
Glasenbergwho led Glencore for nearly two decades before his retirement in 2021, owns a 10% stake in the mining company, worth about $5.4 billion at today’s share price.
An avid cyclist, he has also invested in the high-tech cycling clothing brand Q36.5, which sponsors a professional cycling team.
Founded in Treviso over 70 years ago, Pinarello is now known for its carbon racing bicycles, some of which cost more than £10,000. Pinarello riders have won the Tour de France, cycling’s premier event, more than a dozen times.
Italian media reported that Glasenberg was seen visiting Pinarello this week.
L Catterton has close ties to the LVMH luxury group and significant experience investing in fitness companies. The consumer investment group has previously backed the likes of connected fitness group Peloton and leisurewear brand Sweaty Betty.
At the time of the Pinarello acquisition, L Catterton said it wanted to expand the business globally, including by expanding business lines that sell apparel and accessories. As part of that deal, CEO Fausto Pinarello, son of the founder Giovanni, remained at the head of the company at that time.
Glasenberg is in talks for an approximately 80 percent stake in the company, while Fausto Pinarello would retain a minority stake, according to a person familiar with the matter.
Luxury sports brands are an attractive segment for private investors due to their relatively high gross margins.
Glasenberg’s interest was first reported by the Italian newspaper Il Messaggero. L Catterton and Glasenberg declined to comment. The Pinarello company did not respond to an immediate request for comment.
https://www.ft.com/content/43ab9fde-8725-40d8-9e9a-e922447c1be6
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