Takeover Associates Pinarello with Luxury Brands Like Dior and Louis Vuitton
VILLORBA, Italy – It’s said that cycling is the new golf; the announced acquisition of Pinarello by an investment company which operates luxury brands emphasizes this. The takeover associates Pinarello with Dior, Louis Vuitton, Hublot, Moët & Chandon and many more brands for the rich and famous.
It is like the image of an ultra-expensive racing bike that is hung on the wall of the living room; it elevates the bike to cult status. This is where the acquisition of Pinarello is all about. The new owner wants to turn it into a brand like Ferrari.
L Catterton, one of the world’s largest consumer-focused private equity firms, has taken over the majority of the shares of Pinarello Holding. Fausto Pinarello, current CEO of Cicli Pinarello Spa, remains as CEO.
Fausto Pinarello, Pinarello CEO, commented, “L Catterton’s unparalleled experience in building leading brands and deep understanding of the global consumer market make them the ideal partner for Pinarello. With even more passion than before, we will write a new page of the company story. It is still the story of our company which will continue to be led by the same team that made Pinarello as it is today. With L Catterton Pinarello will see new growth perspectives.”
New concept stores
In a press release Pinarello announces plans to expand its presence globally and the company aims at opening new concept stores. The investment operation was conducted jointly by L Catterton Europe and L Catterton North American Growth funds and regards the majority of Pinarello Holding capital, while Fausto Pinarello maintains a minority – although significant – stake. The amount of investment or L Catterton’s stake in the holding was not published.
Pinarello Holding counts € 52 million revenues during fiscal year 2015/2016, 90% of which are realized abroad. Operating in more than 50 countries around the world, Pinarello has more than 50 employees and invests 4% of revenues in R&D.
‘Supporting Pinarello’s success’
“We are thrilled to partner with Pinarello, which over nearly seven decades has established itself as the premium road cycling brand in the world,” said Andrea Ottaviano, Managing Partner of L Catterton Europe. “We look forward to supporting Pinarello’s continued success.”
Michael Farello, Managing Partner of L Catterton’s North American Growth Fund, added, “We are pleased to have the opportunity to help Pinarello to further extend its leadership position across the bicycle, accessories and apparel categories. With its rich heritage and outstanding management team, Pinarello has been generating double digit revenue growth for more than 10 years. We will build on that growth and success as we work to continue the rapid expansion of the Pinarello brand and legacy.”
About L Catterton
L Catterton, formed in 2016 through the partnership of Catterton, LVMH and Groupe Arnault, is the largest consumer-focused private equity firm in the world, operating multiple funds out of seventeen offices across five continents. L Catterton invests in all major consumer segments, including: Food and Beverage, Retail and Restaurants, Beauty and Wellness, Fashion and Accessories, Consumer Products and Services, Consumer Health, and Media and Marketing Services, as well as real estate projects anchored by luxury retail.