LAS VEGAS, US (Oct 3) - Alan Finden-Crofts sold the Derby Cycle Group for US$ 40 million; he said last week at the Interbike Show in Las Vegas. "This price was one of the major reasons behind the sale. Also the fact that it will allow us to concentrate on selling our international and world famous brands of Raleigh and Diamonback; contributed to the sale," stated Raleigh Cycle Ltd. owner Finden-Crofts.
Raleigh Cycle has sold its Germany subsidiary to a Frankfurter private equity firm called Finatem II Beteiligungsgesellschaft that specializes in investing in medium-sized German companies. Finden-Crofts further said about the sale: "The Derby Cycle Group has achieved a significant turnaround over the last few years into a highly successful business. The structure of our German business, in selling National brands, differs from our core worldwide activities and with manufacture in Germany it combines IBD product ranges with private label business. With that it is different from our core business with the international Raleigh and Diamondback brands that Derby Germany will continue to sell as a licensee in their market."
Derby Germany Managing Director Mathias Seidler said about the sale: "We welcome this initiative and the new owner, Finatem. The financing structure and strategy will help to pursue our growth targets in Germany and Europe even more intensively. The investment of Finatem underlines their confidence in our production in Cloppenburg, Germany. (JO)