Dublin-based private equity firm Causeway Capital has acquired British bike brand Whyte Bikes.
Whyte Bikes, which was formed in 1999, generates turnover in the region of £15 million (€17.2 million) and does business with customers throughout the UK and Europe.
The acquisition involves the purchase of the entire company from Cairngorm Capital. It’s understood the investment is in the region of £5 million.
Causeway Capital is a growth-focused private equity firm investing in businesses across Ireland and Britain. The firm recently closed its second fund, Causeway Capital Partners II, with a focus on innovative SMEs with sustainable growth plans.
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Causeway said it made the investment because of the exposure it brings to the wellness and outdoor active living markets as well as the sustainability element of cycling and e-bikes.
Nikki Hawes, chief executive of Whyte Bikes, is staying with the business, which will continue to focus on product development and innovation.
Whyte Bikes and Causeway Capital both said the partnership will strengthen the company’s ability to drive ongoing innovation, service its dealer base, and collaborate with key suppliers and partners.
Whyte said it will ramp up efforts to extend its reach beyond the brand’s current foothold in the UK with plans to expand further in continental Europe and worldwide.
“We will enhance our product offerings, expand our global footprint, and invest in our brand. This will allow us to create even better experiences for our partners and riders worldwide,” said Ms Hawes.
Matt Scaife, partner at Causeway Capital, said: “Whyte is a category-leading British brand built on design, engineering and innovation. Wellness and outdoor recreation show strong long-term growth.
“The performance mountain bike market is accelerating, driven by technology innovation and increasing participation amongst younger riders. We are delighted to use the first investment from Causeway Capital Partners II LP to back Nikki and the Whyte team.”
