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Brompton Bicycle has agreed to sell a £19 million stake in the company after shareholders approved an investment from the Business Growth Fund (BGF), which is backed by multiple high street banks.
Since 1975, Brompton has been independent, owned by the founder Andrew Ritchie, the current CEO Will Butler-Adams, their friends, family, and its staff.
This partnership with BGF sees it take a minority stake to support Brompton’s ambition to accelerate growth.
As reported last month, it is understood that the investment values the company at around £180 million.
Will Butler-Adams, CEO at Brompton, said: “Over the last two decades, Brompton has grown organically at circa 20% a year, funded by reinvesting our profits. For the year ended March 2023, turnover grew 21% to £130m, supported by the launch of the Superlight T Line and Electric P Line products.
“We export 80% of our bikes to 46 countries, and in November 2022 made our one-millionth bike, a great achievement. But this is not enough, we need to move faster. The impact of Climate change is being felt by us all and the greatest carbon emissions come from our cities where most of the world’s population now lives.
“Our team at Brompton are brimming with ideas to accelerate our growth through product innovation, storytelling, outstanding stores and having fun with our amazing community. But if we are really going to go for it, we need to strengthen our balance sheet to give us the confidence to be more ambitious.”
Last year, the brand unveiled plans of a potential new “revolutionary” factory.
The 100-acre site on a floodplain in Kent would be redeveloped in partnership with Ashford Borough Council and, if approved, would open in 2027 with its current West London home operating until 2030.
The site would also incorporate a visitors’ centre, museum, educational space, and café.
Daina Spedding, investor at BGF, said: “We are incredibly excited to be backing an iconic British brand that is rich in heritage and engineering prowess, with an outstanding track record of profitable, global growth.
“From the outset, there has been a clear synergy between Brompton and BGF, with shared long-term goals and a focus on sustainable growth that is good for both people and planet.
“We look forward to supporting the business as it continues to expand into new markets and invest in new technologies and manufacturing capabilities to meet ever-growing demand for its revolutionary cycling range.”
