Derby Cycle Goes Public
Germany’s biggest bike maker – Derby Cycle – is preparing to go public on the Frankfurt Stock Exchange. The company, headed by Mathias Seidler (photo), will use the capital from its flotation for further penetration of the markets in Germany and Europe. Derby Cycle also intends to
CLOPPENBURG, Germany – Germany’s biggest bike maker – Derby Cycle – is preparing to go public on the Frankfurt Stock Exchange. The company, headed by Mathias Seidler (photo), will use the capital from its flotation for further penetration of the markets in Germany and Europe.
Derby Cycle also intends to focus strongly on electric bikes as the company expects further growth of this market in which it wants to become a leading maker.
The Derby Cycle Group sold about 430,000 bicycles (including 44,000 e-Bikes) during the fiscal year 2009/2010 (as of September 30). Its revenues stood at 173 million euro. The company’s earning before interest and taxes (EBIT) totalled 12 million euro or over 7% of its revenues. Derby Cycle has approximately 550 employees and currently sells bicycles in more than 40 countries.
Derby Cycle is in terms of revenues the largest bicycle manufacturer in Germany and one of the leading manufacturers in Europe. The company offers five well-established bicycle brands. The Focus and Univega brands cover the sport sector while the Kalkhoff, Raleigh and Rixe labels serve the comfort segment.
“We are well prepared for a possible IPO and can start the process soon given favourable underlying conditions,” says Mathias Seidler CEO of Derby Cycle who has been with the company since 2001. “Our aim is clear: we want to drive our strategy of expansion further. Over the past five years we have consistently focused on supplying the specialist trade with top-quality bicycles. In so doing, we were able to nearly double our revenues and constantly improve the company’s profitability. We sold around 50,000 e-Bikes in 2010. Experts are forecasting strong growth in this sector in the coming years in Europe and beyond. We want to benefit from this trend. An IPO would help us to do just that.”