L Catterton sells its stake in Pinarello to ‘private family office’

L Catterton has announced that it has sold its stake Pinarello to a private family office.

Details of the transaction were not disclosed, although reports surfaced last month that mining billionaire Ivan Glasenberg was in discussions to buy an 80% share in the Italian brand.

L Catterton, an investment firm that is partially owned by LVMH, has maintained a controlling stake since purchasing the brand in 2016.

Fausto Pinarello will retain an interest in the company while keeping his role as chairman. He will continue with his involvement in the company’s production and R&D departments to help shepherd the business through its next wave of innovation and growth.

Fausto Pinarello said: “With L Catterton’s global platform and their expertise in fitness, outdoor, and luxury, Pinarello has grown its status as an elite performance brand at the apex of the cycling industry.

“Over the past seven years with L Catterton’s partnership and capabilities, we have built on our best-in-class R&D capabilities, bolstered by collaborations with the industry’s top riders and organisations, creating a product set that remains consistently at the forefront of innovation. We have also achieved record revenues and are now poised for our next era of growth.

“I am very excited to continue the momentum that we have achieved, and this transaction will allow us to further elevate our company as the international leader in the high-end bike sector through ever-increasing investments in R&D focused on making industry-changing innovations around materials and products.”

The company said that Houlihan Lokey acted as financial advisor and ADVANT Nctm provided legal counsel to L Catterton and Pinarello. Electa Italia and GE Lux acted as structuring advisers.

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Matt Nugent, a Partner in L Catterton’s growth fund, added: “Since partnering with Pinarello, we have leveraged our extensive expertise in the health & wellness and sporting categories to build on Pinarello’s Italian racing heritage and expand its reach to riders around the world.

“The company’s exceptional growth was enabled by an extremely talented and committed management team, and we are very proud of the success they have achieved.

“We are confident that the company will continue this success in its next chapter, as it continues to design industry-leading products for both its current, and new, market segments.”

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