Private equity groups again rumoured to be closing on Rapha takeover

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Sky News is reporting that private equity groups are once again paying close attention to Simon Mottram’s Rapha business.

With bids for the business said to have been placed last month a figure of around £150 million is reported to have been made with Rapha taking advice from investment bank William Blair.

Revenues for the business have been climbing in recent times with the 12 months to January posting a 30% increase up to £60 million. This is in part attributed to 40% higher sales volume.

CyclingIndustry.News recently carried an in-depth interview with Mottram within which such speculation was  cast to the side with the Rapha founder indicating it was far too soon to make any comment.

Within Mottram revealed that as an aside to the clothing business, Rapha’s travel arm had just turned over £1 million in 2016.

At the time he said: “That’s a small portion of the business in the grand scheme of things, but is steadily becoming an integral part of the Rapha brand.”

The £135 membership scheme is also said to be an important factor in the success of the brand, something Mottram aims to grow to 15,000 by the end of 2017.

Rapha is already part-owned by investment business Active Private Equity, which also has shareholding in a number of fast-food chains.

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