Causeway Capital acquires UK mountain bike firm

Causeway said it invested in Whyte Bikes, acquiring 100% of the business, because of the exposure it brings to the wellness and outdoor active living markets

Whyte Bikes is a £15m turnover business with customers throughout the UK and Europe.

Dublin's Causeway Capital has acquired UK mountain-bike brand Whyte Bikes.

The deal comes after the private equity firm recently closed its second fund, Causeway Capital Partners II, with a focus on SMEs with sustainable growth plans. Causeway invests in businesses across Ireland and the UK.

Whyte is a £15m turnover business with customers throughout the UK and Europe. Causeway said it invested in the firm, acquiring 100% of the business, because of the exposure it brings to the wellness and outdoor active living markets, as well as the sustainability element of cycling/e-bikes. 

The existing chief executive, Nikki Hawes, is staying with the business, which will continue investing its focus on product development and innovation, so Whyte remains at the leading edge of the performance mountain bike sector.

It is the first investment from CCP2, a €100m successor to CCP1. The target scale of investments for CCP II is in the €2m to €10m range. Financial details of this transaction have not been disclosed, but the deal is understood to be in the region of £5m (€5.75m).

Whyte will now ramp up efforts to extend its reach much beyond the brand’s current strong foothold in the UK, with plans to expand further in continental Europe and worldwide.

“We knew from the start that the Causeway Capital team were a great investment partner for Whyte Bikes,” Whyte chief executive Nikki Hawes said. 

"This new partnership is an exciting step forward, building on our 25-year history of producing high-quality bikes. 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. I want to thank the team at Cairngorm Capital — their partnership and support have been invaluable in driving our transformation and bringing us to where we are today."

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.”