In the latest issue of the Consumer Goods, Retail, E-Commerce SektorReport for Q4 2024, we turn our attention to an industry that has been characterised by ups and downs in recent years: the bicycle industry. We are not only focussing on the bicycles themselves, but also on an often-underestimated sector - accessories.
A lot has happened since our last report on this topic in 2021. We shed light on the key market developments, analyse important corporate transactions and take a special look at the takeover of Lupine Lighting Systems, a premium manufacturer of bicycle lights and other products, by the Belgian private equity investor Gimv, which was announced in December.
The coronavirus pandemic has caused a real boom in the bicycle industry. People around the world rediscovered cycling - whether for the joy of exercise, as an environmentally friendly alternative or out of a need to avoid public transport. Manufacturers struggled with supply bottlenecks and capacity problems, while demand for bicycles and accessories, such as powerful lights, went through the roof.
But when the pandemic subsided, disillusionment set in. Most of the additional demand was met and many returned to old habits. Nevertheless, some brands managed to capitalise on the momentum of the hype. Names such as Canyon or the online retailer Bike24 are now synonymous with success and growth in this sector.
The M&A market also played a key role: Groupe Bruxelles Lambert acquired a majority stake in Canyon back in 2020, with further investors joining in 2022. Bike24 also relied on private equity support and expanded its market presence through targeted acquisitions even before the pandemic.
However, the recent takeover of Lupine Lighting Systems by Gimv shows once again how dynamic the industry remains. What drives investors? Which brands are setting trends? In this report, we take a deep dive into current developments in the bicycle industry and trends in the M&A market.
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