South African Billionaire (no not moi) living in Switzerland may be trying to buy a controlling stake in the Pinarello business
From Financial Times ft.com Ivan Glasenberg nears deal to buy elite cycling brand Pinarello | Financial Times (ft.com)
Billionaire Ivan Glasenberg, the former chief executive of Glencore, is poised to acquire a controlling stake in elite bicycle maker Pinarello as he expands his stable of cycling interests. The premium Italian brand was controlled by the Pinarello family until 2016, when consumer investment firm L Catterton acquired it. Glasenberg is understood to be close to finalising buying a majority stake in Pinarello, according to several people familiar with the transaction. The deal values the company at roughly €250mn, one of the people said. The mining magnate and athlete — a racewalking champion in his youth who nearly competed in the 1984 Los Angeles Olympics — has been investing in cycling since he stepped down as head of Glencore. Glasenberg, who led Glencore for nearly two decades before his retirement in 2021, owns a 10 per cent stake in the mining company, worth approximately $5.4bn at today’s share price. A keen cyclist himself, he has also invested in high-tech cycling clothing brand Q36.5, which sponsors a professional cycling team. Founded in Treviso more than 70 years ago, Pinarello is today known for its carbon racing bicycles, some of which cost more than £10,000. Pinarello riders have won the Tour de France, cycling’s premier event, more than a dozen times. Italian media reported that Glasenberg was seen visiting Pinarello this week. L Catterton has close ties to luxury group LVMH and significant experience investing in fitness companies. The consumer investment group has previously backed the likes of connected-fitness group Peloton and leisurewear brand Sweaty Betty. At the time of their acquisition of Pinarello, L Catterton said it aimed to expand the business globally, including by expanding business lines selling apparel and accessories. As part of that deal, chief executive Fausto Pinarello — the son of founder Giovanni — stayed on to lead the company at the time. Glasenberg is in talks for a stake of about 80 per cent in the company, while Fausto Pinarello would retain a minority holding, according to a person familiar with the matter. Luxury sports brands are an appealing segment for private investors because of their relatively high gross margins. Glasenberg’s interest was first reported by Italian newspaper Il Messaggero. L Catterton and Glasenberg declined to comment. The Pinarello company did not respond to an immediate request for comment.
And from Cyclingnews
Pinarello could be sold to mining billionaire, reports suggest | Cyclingnews
Earlier this year we reported that, following a €250 million market valuation, the private equity firm that owns an 80% majority stake in Pinarello was looking to cash in and sell up. Since then there has been little news beyond some reports that the Pinarello family was considering buying its majority stake back, having sold it to L Catterton, a private equity firm in partnership with luxury giant LVMH (Louis Vuitton Moët Hennessy) for a reported €90 million in 2016.
But this week, Italian website Tuttobiciweb reported that the former CEO of one of the world's biggest mining companies was visiting the brand in person. The visit was officially to purchase a Bolide, but the circumstances surrounding the visit have led to significant chatter of an impending transaction much larger than that of just one bike.
Was Ivan Glasenberg, with a reported net worth of $8.5bn, a keen interest in cycling and triathlon, and who is already an investor in the new cycling brand and team Q36.5, just popping to Italy to buy a TT bike in person? One would speculate that it's possible he could purchase one in his now native Switzerland.
Currently, this in itself is just speculation, but given the financial standing of Glasenberg, and the fact that Pinarello is up for sale, it is certainly enough to raise the "Not A Coincidence" alarm.
In addition to that, another Italian outlet, Tribuna Treviso reports that "well-informed" sources suggest Glasenberg is set to present an offer to Houlihan Lokey, the investment bank entrusted with finding a buyer.
If the sale does go ahead it could see a shakeup of sponsorship at the top level of our sport. Pinarello has been with Ineos Grenadiers since its inception as Team Sky, but with Glasenberg's existing stake in Q36.5 team, it could certainly lead to change. The Ineos partnership is extremely longstanding, and we suspect it's more likely that Q36.5 would move to the British outfit.
Bicycle brands have become big business, and Pinarello certainly isn't the first name to be bought and sold as an asset as much as a company that makes sports equipment. Colnago was a notable similarity, with Ernesto himself selling the famous brand to a UAE investment firm. Similarly, though without selling a majority, Canyon recently received a $30 million injection from a combination of two investment groups. Whether we like it or not, the brands we use and identify with as consumers are financial assets to be traded as much as anything else.
Responding to the claims, Pinarello has issued the following official statement:
"No announcement has been made about an acquisition and it is Pinarello's policy not to comment on rumour and speculation."
