NBA legend dunks $30 million into Canyon for a 4% stake

It has being reported that Canyon has secured $30 million in investment from LRMR Ventures, the investment vehicle of NBA Basketball Legend LeBron James, and SC Holdings.

In announcing the news the brand highlighted that, “As bike enthusiasts and fans of the Canyon brand, the new investors will join the company’s existing shareholders, including majority holder GBL (Groupe Bruxelles Lambert) and the company’s founder, Roman Arnold, to support Canyon’s ambitious US growth plans.”

“As an avid cyclist and storyteller, I’m excited about partnering with Canyon,” said Maverick Carter. “The quality of the products, the power of the Canyon brand, and the unique distribution model create a lot of compelling opportunities we want to be a part of.”

“The strategic equity investment was led by LRMR Ventures, the family office of LeBron James and Maverick Carter, and SC Holdings, a US-based private equity firm focused on market-leading brands led by Jason Stein.”

SC Holdings founder/Managing Partner Jason Stein added: “Canyon has been a leader in cycling and a pioneer in direct-to-consumer e-commerce for over 20 years. From professionals on tour to everyday riders on streets and trails around the world, Canyon’s impact on sports and culture is seen everywhere. We are honoured to partner with Canyon, GBL and LRMR, and excited to help capture the growth opportunity in the US.”

Late in 2020, Canyon sold a 52 per cent stake to investment group GBL for €350mn, valuing its equity at about €670mn.

“LeBron is one of the biggest athletes globally and he truly cares about cycling,” Canyon chief executive Nicolas de Ros Wallace told the Financial Times, adding that he was keen to leverage the star’s expertise in the US sports industry and retail market in a team-up he called “the perfect match”.

“Canyon’s German founder Roman Arnold, who holds a stake of about 40 per cent, said in a statement that the company had not actively scouted for additional investors but was swayed by the new partners’ “passion” for the brand and its ambitions.”

Canyon is at the crossroads of many societal tailwinds, including health and wellness, sustainable mobility and online distribution. It continues to expand its international footprint and trajectory as a leader in innovation, technology and performance in the bicycle industry. The company is a category leader in all competitive and recreational road, gravel, mountain and urban cycling disciplines. At the same time, Canyon is focusing on new growth areas through the expansion of its service offering and further developments in the field of e-bikes, urban bikes and connectivity.

2021 saw a record year for Canyon, with a revenue add of 30%, hitting €416 million, seeing a new CFO joining the business.

As was the case on the initial Canyon deal, investment bankers with Baird advised on the latest transaction.