Fallbrook – enviolo Has New Owner
CEDAR PARK, USA – The last week announced Chapter 11 for Fallbrook Technologies Inc. has resulted in new ownership of the company. The former senior debt holder Kayne Anderson Capital Advisors is now the new majority shareholder and the financing source for Fallbrook, including its brand for step-less bicycle transmission systems enviolo.
Los Angeles based Kayne Anderson Capital Advisors LP is an independent alternative investment management firm focused on investments in niches. Kayne manages nearly USD 27 billion in assets for institutional investors and clients.
“For us the main message is that our enviolo activities remain unaffected while Fallbrook is undergoing its restructuring under Chapter 11,” explains David Hancock, MD of enviolo (former NuVinci Cycling). “An important element of the Chapter 11 mechanism is the fact that it enables companies to implement financial restructuring measures to reduce debt service and recapitalize the balance sheet. During the proceedings, enviolo’s daily operations will not be affected. Fallbrook’s restructuring plan already has creditor agreement and committed financing.”
“A key aspect of Fallbrook’s business strategy is licensing its technology in multiple industries.”, says David Hancock explaining the back ground of the company’s financial situation. “In the past 13 years Fallbrook has been financed by multiple rounds of venture capital creating a complex capital structure. While the Fallbrook CVP technology has been licensed in several industries, the development timelines are long for many of the licensees’ applications – such as automotive primary transmission. This resulted in royalty revenues being pushed into the future. enviolo has posted strong financial results; however, it wasn’t enough to offset the lack of current royalty revenues.
Hancock points out that despite the Chapter 11 procedure, “Bike OEM’s lead time remains the same, 30 days on existing products and 60 days on the newly introduced portfolio. All planned MY2020 products continue to be on track for market introduction. Our enviolo’s European warehouse in the Netherlands will maintain its inventory at a sufficient level, including spare parts. Importantly, enviolo warranties will not be affected.”
“To discuss our parent company’s financial restructuring, we organize a webinar on March 15,” says David Hancock.