Global private equity firm, Rhône, has announced that it has agreed to make an equity investment in Wahoo Fitness.
Wahoo founder and Chairman Chip Hawkins and the company’s management team will make significant reinvestments alongside Rhône. Wahoo’s current private equity investor, Norwest Equity Partners (“NEP”), will continue to own a minority investment in the company.
Chip Hawkins, founder and Chairman of Wahoo Fitness, said: “Rhône’s investment marks an exciting new chapter for Wahoo. Rhône has a remarkable track record in partnering with founder-led companies to evolve and strengthen their businesses. I believe Rhône will be a great partner as we continue our global expansion, broaden our portfolio, and leverage the power of technology to transform the way people train and reach their fitness goals.”
According to Rhône, this investment will capitalize on trends such as increased emphasis on health and wellness, the cycling boom, and an increased adoption of home training equipment
Robert Agostinelli, Co-Founder and Managing Director at Rhône, said: “We are proud to partner with Chip, Mike, and the rest of the Wahoo team in their plans to grow the business during this dynamic and exciting time for the connected fitness industry. In addition to Wahoo’s strong leadership team, we are impressed by the unmatched quality and breadth of Wahoo’s brand and product innovation capabilities and its loyal, passionate customer following.”
The transaction is expected to be completed in the third quarter of 2021.
Goldman Sachs and Baird advised Wahoo on the transaction. Jones Day served as lead legal advisor and BDO provided transaction advisory services to Wahoo. BofA Securities, Inc. and RBC Capital Markets, LLC acted as financial advisors to Rhône on the transaction and Kirkland & Ellis LLP acted as legal advisor to Rhône.