Belgium Brewery Invests in Eddy Merckx
Eddy Merckx Holding, the parent company of the Eddy Merckx Cycles, raised its the capital by 7.4 million euro with an new investment of an all new partner in the Eddy Merckx Holding, Diepensteyn, the holding company of Jan Toye CEO of Palm Breweries.
EDEGEM, Belgium – Eddy Merckx Holding, the parent company of the Eddy Merckx Cycles, raised its the capital by 7.4 million euro with an new investment of an all new partner in the Eddy Merckx Holding, Diepensteyn, the holding company of Jan Toye CEO of Palm Breweries.
Besides the investment of Diepensteyn, Eddy Merckx’s main shareholder Sobradis, the holding company of George Brantegem, turned an existing loan into capital. “The capital increase was for done several reasons,” says Kurt Moons, CEO of Eddy Merckx Cycles. “The bicycle industry is very capital intensive. To realize our new ideas and plans we needed a stronger financial base.”After the financial transaction Sobradis still controls 67 percent of the shares. With almost 20 percent Diepensteyn become the second largest party. The remaining shares are owned by Kurt Moons and Eddy Merckx himself.
Merckx sold his creation in 2008 to Sobradis. Following the acquisition the annual results of Eddy Merckx Cycles were anything but good. The turnover was rising but the profitability was dramatic. In 2009, both net income (-853,654 euro) and cash flow (-735,222 euro) showed red figures. And that’s does not include the expensive deal with the Quick-Step Cycling Team as of 2010. Because the company extended its financial year, the figures over 2010 are not yet published. “We are expecting the figures to show profit over 2010”, said Kurt Moons.
Merckx himself is no longer employed but the company still hires his services. His presence is very important for the future of the company. Merckx is not going to stop. “The factory is my life. I have too much energy to retire.”