GREENWICH, Conn. (BRAIN) — Italy's Pinarello bike brand has been purchased by L Catterton, a U.S.-based private equity firm. The luxury brand conglomerate LVMH, the owner of Louis Vuitton and other brands, is a part owner of L Catteron. A purchase price was not released.
Pinarello began in Treviso, Italy, more than 65 years ago. The Pinarello management team will continue to be led by CEO Fausto Pinarello out of the brand's Treviso headquarters. Fausto Pinarello retains a "signifcant" minority stake in the brand.
"L Catterton's unparalleled experience building leading brands and deep understanding of the global consumer market make them the ideal partner for Pinarello," said Fausto Pinarello in a press release issued by L Catterton. "L Catterton appreciates our uncompromising commitment to creating the world's finest racing bicycles, and we know their financial and operational expertise will be invaluable during this next phase of growth. Together with L Catterton, we look forward to expanding our global footprint and continuing our path of innovation while staying true to the qualities that have made our bikes so beloved."
L Catterton's other investments include: Peloton, Restoration Hardware, CorePower Yoga, Outback Steakhouse, Noodles & Company, Odwalla, P.F. Chang's, 2XU and other consumer brands. The firm claims to be the world's largest consumer brand private equity firm.
"We are thrilled to partner with Pinarello, which over nearly seven decades has established itself as the premium road cycling brand in the world," said Andrea Ottaviano, a managing partner of L Catterton Europe. "Pinarello has consistently outperformed the $54 billion global bicycle market, leading the industry with products that are of unmatched quality and beauty. We look forward to supporting Pinarello's continued success."
Michael Farello, managing partner of L Catterton's North American Growth Fund, added, "We are pleased to have the opportunity to help Pinarello further extend its leadership position in the cycling category. With its rich heritage and outstanding management team, Pinarello has been generating double-digit revenue growth for more than 10 years. We will build on that growth and success as we work to continue the expansion of the Pinarello brand and legacy."
In October, Pinarello confirmed reports that it was in discussions with LVMH about a possible takeover. Last week, a London newspaper said the British cyclewear brand Rapha also was in discussions with LVMH.
In a statement, Pinarello said it plans to expand its presence globally and open new Pinarello concept stores in "some of the most prestigious capital cities in the world."
Pinarello Holding said it recored 52 million euros($55.7 million) in sales during its 2015-2016 fiscal year. The company has more than 50 employees and produces 30,000 bikes and frames per year.